Both Microsoft and American Express are fighting to acquire equity in the company.
A number of technology news reports that were recently published have suggested that insiders who are close to this issue claim that American Express Co. and Microsoft are both showing interest in purchasing an equity stake in Foursquare Labs Inc.
If these reports are true, then it suggests that the two giants would rather invest in the company than work jointly on it.
Foursquare is a tremendously popular form of mobile check-in platform. At the same time that this technology news was being released, it was also in negotiations with venture capitalists in possession of convertible debt with regards to transforming their current “holdings into equity”. The discussions that are underway are also indicating that the prospective investors have become more bold about the potential of Foursquare, following the results that it has been achieving through its latest approach to advertising that gives brands the ability to target users at the time that they have checked into a specific location.
This technology news is clearly highly appealing to Microsoft and American Express, that each have their own plans for it.
From the side of Microsoft, the acquisition of Foursquare would provide the giant with the opportunity to develop a larger role in both mobile commerce as well as in the social media scene. On the other hand, it is believed that American Express is primarily interested in the check-in platform so that it will be able to boost its competitive edge with its credit card rivals through the use of enhanced marketing an improved loyalty programs that are furthered by the influence of social media.
Steven Rosenblatt, the chief revenue officer for Foursquare, released a technology news statement, recently, which said that “I think we’ve proven our business model.” He also went on to add that “Our business model is very clear and it’s working, doing what we thought it would do, if not more. It’s all well ahead of what we anticipated.” If the rumors are true about Microsoft and American Express, then clearly Rosenblatt is right.
Foursquare aims to expand some of its services
Location-based services are becoming more popular for businesses and consumers. These services offer benefits for both parties: Businesses can use geographic information to formulate better marketing strategies and consumers can be rewarded for their loyalty to a specific company by “checking-in” to a location. Checking-in to locations is a trend that has taken the social media space by storm. Foursquare is one of the pioneers of this service in the social sector, and the platform is now taking steps to streamline its location-based services.
Platform aims to streamline its practice
Foursquare has announced changes to its terms and conditions documents, which will take effect on January 28, 2013. The social media platform is looking to better streamline its services for businesses and consumers. For years, Foursquare has been one of the most prominent names in social media marketing and location-based services, but other social networks have begun to encroach upon the platform’s virtual turf. In an effort to stay relevant with consumers and businesses, Foursquare is taking steps to provide better service.
New policies could be of benefit to businesses
One of the changes being made to the platform’s privacy policy involves the names of its users. Foursquare will begin showing the full name of each user across its entire platform, allowing this information to be seen by anyone. Users can, of course, opt out of having their full name displayed without being faced with any penalties in terms of service. Another change involves the check-in history businesses can see. Traditionally, businesses could only view check-ins over the most recent three-hour period. After the changes go live, however, businesses will be able to keep better track of their traffic.
Foursquare manages to stay ahead of the competition, for now
The changes may help businesses provide better rewards for consumers that check-in frequently, while also allowing these businesses to access information that can be used for marketing campaigns. In 2012, Foursquare reported more than 15 million new users and celebrated the 3 billionth check-in. While several other social networks are pushing new location-based services, Foursquare continues to hold a solid lead over its competitors.
