Yesterday, the Internet was abuzz with the news that Microsoft bought Nokia. As a friend put it, Bill Gates’s phone broke down, and he instructed Ballmer to go get him a Nokia instead. He got what he wanted, of course, albeit for a whopping $7.2 billion! But Microsoft’s not done spending money. After all, under Ballmer‘s reign, the company did make a profit. This time, the news is that it’s ready to engage in a bidding war with AmEx. For no less than Foursquare.

Microsoft Foursquare

Yeah, Microsoft wants Foursquare, but so does the credit card giant; and I don’t know, but AmEx is not the first company you want to go up against in a bidding war, yes?

According to a report published by Bloomberg, both companies want more than a piece of Foursquare Labs Inc., and it’s there’s no equivocation about it. Neither group is willing to take up a partnership either, so it’s probably going to be a bidding war.

Now why would Microsoft want to buy Foursquare?

Perhaps the better question would be, “Why not?” If you think about it, Foursquare is a pioneer in its niche, and while it has amassed quite a huge debt, it does have a new advertising approach that has made it more interesting to investors. The idea of brands targetting users whenever they check in is certainly not rocket science, but that makes Foursquare a viable business.

Bearing that in mind, the acquisition of Foursquare will give Microsoft a foothold in the social – and mobile – niche. No brainer.

Of course, AmEx has its own – just as valid – reasons, and it has money to spare for sure.

There is no official word on the talks – it’s all hush hush, as these things usually go. The question that remains is this: If Microsoft does win and end up with Foursquare, what will this mean for the app?

[Image via Computerbild]