Facebook And Gowalla Won't Confirm Rumors Of Deal

Neither Facebook nor Gowalla has confirmed a rumored acquisition of the location sharing service by the leading social network.

Representatives from both companies told us via email that they don’t comment on rumors and speculation.

CNN broke the story last night without quoting any sources on the record; the news outlet said that most of Gowalla’s staff would move to Facebook headquarters to work on timeline, the advanced profile yet to go into beta.

Since launching in 2009, Gowalla has amassed only 10,000 users connected to Facebook, compared to 560,000 for archrival Foursquare.

Facebook’s own geolocation service has undergone repositioning since launching a year-and-a-half ago, lending a wee bit of plausibility to of an acquisition of Gowalla, which has also had its own repositioning.

For a deal to sufficiently pay reward venture investors, 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 going on between the two.

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