On Tuesday, Foursquare CEO announced that Microsoft had invested $15 million in the company. Last August, a report mentioned that Microsoft was looking forward towards a favorable deal with Foursquare.
Microsoft is now the biggest revenue source for Foursquare after the investment. In 2012, Foursquare data was integrated into Bing through Bing sidebar by Microsoft. According to Dennis Crowley, CEO of Foursquare, Microsoft has signed a “multi-year contract to license Foursquare data in services such as its mobile operating system and Bing search engine.
Foursquare has welcomed the investment as the company will get a new stream of data-licensing revenue and to increase the company’s valuation that has remained the same since 2011. The deal will allow Microsoft to acquire more Foursquare data than any of Foursquare’s partners which would be integrated into Windows apps and services including Bing.
“This is huge validation for the stuff we’ve been working on,’ said Crowley. “Its one of the leaders in the space we work in looking at us and saying we can really help power the next generation of devices,” he added.
For a while, Microsoft has focused on expanding its social-network presence. In 2012, company acquired social-networking enterprise, Yammer and had been integrated across the company’s products and services. Ziz Serafin, VP of Microsoft’s Bing unit and Crowley held talks last year that led to the investment and they did not discuss acquisition, said a source related to the agreement.
Foursquare is a social-media app that allows users to check-in from a place and has 45 million users, which has seen an increase from 33 million last year.