Is Foursquare really only bringing in $2M a year? Is that revenue or profit? Either way that's not a lot for a company that I'd consider to be in the "Big 7" of social networks (FB, Twitter, G+, Instagram, Tumblr, Pinterest, and Foursquare). I mean that's certainly a lot of money in absolute terms but FB is bringing in billions a quarter. Also I've been to Foursquare's office in NYC and it's very, very nice. I would have a hard time believing a company barely getting by would invest in a place like that.
I thought that actual revenue is actively frowned upon because it's just an obstacle when you hype up the acquirement price tag.
I guess Foursquare could actually serve as an example supporting the validity of that insane strategy... They're trying to actually make money, and found that there just isn't much money to be made with what they're doing, and now nobody wants to buy them either.
Maybe that's a misquoted figure?