From Google News

Microsoft Corp. (MSFT) is in talks with Foursquare Labs Inc. about a potential investment in the social-media company, according to people with knowledge of the discussions.

The talks are at an advanced stage, said two of the people, who asked not to be identified because the information isn't public. Foursquare is also meeting with other companies about an investment, and the talks with Microsoft may not lead to a deal, said another person with knowledge of the matter.

Foursquare, which lets users check in to show they're visiting a location, is also negotiating with venture capitalists who own convertible debt about turning their holdings into equity, said one of the people.

The discussions suggest that potential investors are more bullish on Foursquare's prospects after it began reaping the benefits of a new advertising approach that lets brands target users when they've checked into a locale. Foursquare in April raised $41 million in debt, a move that let it keep tinkering with an unproven business model while delaying debate about the company's true worth.

Foursquare, based in New York, had no comment on the talks with investors, said Jon Steinback, vice president of marketing. Peter Wootton, a spokesman for Redmond, Washington-based Microsoft, declined to comment on any talks with Foursquare.

To contact the reporter on this story: Sarah Frier in New York at sfrier1@bloomberg.net; Douglas MacMillan in San Francisco at dmacmillan3@bloomberg.net; Dina Bass in Seattle at dbass2@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net