Facebook Reportedly Acquires Gowalla, No Confirmation From Either Company

Facebook is reportedly acquiring location sharing service Gowalla and bringing “most” of its employees and founder Josh Williams over to Palo Alto headquarters to work on Timeline, according to CNN. We could not get confirmation from Facebook, Gowalla or several investors in the company at this time. Facebook spokesperson Jonathan Thaw said the company doesn’t comment on rumors or speculation.

The Austin-based company launched as a location-sharing service back in 2009 but never got the same sort of traction that New York-based rival Foursquare saw. Today, we can see that the Gowalla app has 10,000 daily active users connected to Facebook against Foursquare’s 560,000 daily actives. Facebook also has its location product Places, which it changed a few months ago to scrap the check-in feed from its mobile platform. Instead, Facebook users must add a city location or tag a specific Place in their Wall or Timeline posts.

Gowalla pivoted earlier this year too, changing its check in-centric app to one that is like a crowdsourced local and travel guide.

The company has raised around $10.4 million in two rounds of funding with investors including Kevin Rose, Chris Sacca, Jason Calacanis, Shervin Pishevar, Gary Vaynerchuk, Ron Conway along with venture firms like Greylock Partners, Shasta Ventures, Founders Fund and Floodgate.

Given the amount of money the company raised, Facebook would have had to pay somewhere around $30 million or so for investors to have made their money back. In 2009, TechCrunch’s Michael Arrington reported that the company’s post-money valuation was $28.4 million at the time of the second venture round. Given Gowalla’s lack of traction plus how aggressively Facebook’s valuation is priced in within private secondary markets, it’s unclear whether this deal would make investors whole.

If this was a pure talent acquisition, we would expect to see Facebook shutdown the standalone Gowalla app too.

Strategic Mobile Marketing

Mediabistro Course

Strategic Mobile Marketing

On October 21. work with the digital strategy director for Saatchi & Saatchi to develop a marketing strategy for smartphones, tablets, and mobile devices! You’ll learn how to optimize content for mobile, create responsive landing pages, and track all mobile efforts. Register now!

 

Leave a Reply

2 Responses to “Facebook Reportedly Acquires Gowalla, No Confirmation From Either Company”

  1. Facebook And Gowalla Won’t Confirm Rumors Of Deal says:

    [...] Facebook would have to pay around $30 million for Gowalla, according to our colleagues at Inside Facebook. Yet this is all speculation, since neither of the companies will comment on whether anything is [...]

  2. AustinStartup » Facebook Buys Gowalla in Talent Acquisition says:

    [...] Facebook Reportedly Acquires Gowalla, No Confirmation From Either Company (insidefacebook.com) [...]

Get the latest news in your inbox
interested in advertising with inside facebook?

Social Media Jobs
of the Day

Social Media Account Manager for Beauty PR Agency

Creative Media Marketing
New York, NY

SEO Specialist

Creative Circle
Atlanta, GA

Vice President, Social

Start-Up Social Media Firm w/ Established Clients
New York, NY

Communications Coordinator

National Science Teachers Association
Arlington, VA

Community Editor

Chalkbeat
New York, NY

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us