Could Facebook's recent tooing and froing over the implementation of its location-based tool be because the social network was waiting to do a deal with Foursquare?

If a report on All Things Digital's BoomTown is to be believed, the location-based app company was mere 'inches' away from signing over its location-based business to Facebook - a deal the site claims Foursquare CEO and co-founder Dennis Crowley was pushing for.

Instead, Foursquare is now set pass up the opportunity of a buyout in order to announce an injection of funds by venture capitalists Andreessen Horowitz.

 

The deal follows a valuation of the location-based network of around $80 million.

Friend or foe?

Linkining up with Andreessen is an interesting move, given the firm's co-founder, Ben Horowitz, recently had little positive to say regarding his dealings with Foursquare.

Following protracted talks, Horowitz commented he would have nothing further to do with Foursquare because he felt Andreessen Horowitz was being played in order to meet someone's agenda.

Now, his investment is set to fund Crowley and co's continued independence, with Boomtown suggesting worries Foursquare would be swallowed up by Facebook's 400 million plus userbase was one reason behind the breakdown in talks between the two parties. Business strategy and price were also thought to be issues. 

The deal is expected to be announced soon, with Foursquare's existing investors thought to have participated in the new round along with Andreessen Horowitz.

[source: All Things Digital]