Yahoo (NASDAQ:YHOO) May Buy Foursquare in $900 Million Deal

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By Jacob Maslow

foursquare on iphoneRumors are swirling Wednesday morning that Yahoo Inc. (NASDAQ:YHOO) is trying to acquire Foursquare for $900 million. According to Tech Crunch, the deal is done, with a few final details being worked out between the companies.

Doug MacMillan from The Wall Street Journal states otherwise, saying Yahoo is not looking to acquire Foursquare.

No one knows for sure if the deal is in the works or not, but credible sources are saying that the rumors are false. Yahoo has stated that they want to focus on the mobile market, making the rumor valid from a business standpoint. The CEOs of both companies, Marissa Mayer and Dennis Crowley are friendly, which makes the deal a possibility.

Years ago, Foursquare was valued at $600 million, but a similar company, Waze, which created a traffic navigation app, was sold to Google for $1 billion and had around the same number of users.

After Foursquare split their service into two different apps last year, the company has found little success. Both apps have underperformed, making the potential acquisition a concern for Yahoo and its shareholders. Yahoo’s CEO, Marissa Mayer, did show interest in Foursquare before Tumblr was acquired by Yahoo.

Currently, there have been no official reports by either company confirming or denying the rumors.

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