Microsoft is reportedly in talks with Foursquare to take an equity stake in the location based social networking service to give them a quick new entry into the social media space.
Bloomberg reports that Microsoft is battling it out with American Express to invest in the company with the anonymous source stating that “other companies” are also in talks with Foursquare about stumping up some cash for an investment.
Microsoft will look to tap into Foursquare’s new approach to advertising that has seen it let brands target users when they’ve checked into to a location using the service.
The new advertising service has turned round Foursquare’s fortunes after it openly asked for money to continue operating earlier this year and managed to raise funding through taking on debt from Silver Lake Management and original Foursquare investors.
The new funding was put to work straight away with 20 new hires across engineering and sales to help create new advertising platforms that were opened up to firms that want to construct their own campaigns. This allowed them to expand internationally and now sees around six million users checking into various locations on a daily basis.
Foursquare is also ready to pull down the curtain on new technology that gives users automatic recommendations when they visit an area or new location without the need to open up an application.
Foursquare has history with Microsoft as it helped to create an application for the Windows 8 OS – something that is not usually that high up the to do list for app developers.
If Microsoft ends up investing in Foursquare it will be the first major investment in social networking since the stake it took in Facebook way back in 2007 and it still holds on to, to this day.
Microsoft’s Windows Phone OS is growing like never before with a deal signing with Nokia helping it to move to second place in Latin America and third place on a global basis, where it still lags far behind Google’s Android OS and Apple iOS.
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