SEATTLE: Microsoft and American Express are vying to take an equity stake in Foursquare Labs, according to people with knowledge of the discussions.
The two companies are competing to invest in Foursquare rather than cooperating on a joint bid, said one of the people, who asked not to be identified because the information isn't public.
Foursquare is talking with other companies about a possible investment, and the talks 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 place like a restaurant or shop, 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.
A stake in Foursquare would give Microsoft, the world's largest software maker, a bigger role in social media and mobile, areas where it has lagged behind competitors such as Apple.
Microsoft has previously put money into other startups, notably with a 2007 investment in Facebook.
That has grown in value and helped unite the software makers against their common foe, Google.
American Express hopes to compete with credit-card rivals by tying marketing and loyalty programs to social-media sites.
It already offers discounts to users who check into a shop or restaurant on Foursquare and pay their tab using an American Express card, and lets customers buy items using a promotional hashtag in posts on Twitter's site.
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, Wash.-based Microsoft, declined to comment on any talks with Foursquare.
Leah Gerstner, a spokeswoman for American Express in New York, said the company "does not comment on rumors or speculation."
Foursquare is on track to beat its sales goals for the year, Chief Revenue Officer Steven Rosenblatt said in an interview.
The closely held company started letting companies send ads to users after they check into a location. Those advertisements are bringing in three times the revenue Foursquare had expected, Rosenblatt said.
"I think we've proven our business model," Rosenblatt said. "Our business model is very clear and it's working, doing what we thought it would do, if not more. It's all well ahead of what we anticipated."
Rosenblatt declined to comment on the company's targets.
Foursquare's results are an encouraging sign to investors who valued the company at $600 million in 2011 and have waited for it to deliver on promises. The company, which pulled in just $2 million in sales last year, has introduced more advertising products in the past few months to make money off its applications. Users click on or save ads delivered after check- ins more than 15 percent of the time on average, Rosenblatt said — a rate that beats the less than 1 percent engagement on a typical mobile ad.
Earlier this year, when Foursquare needed money to continue operating, it made forecasts for investors about how successful its products were going to be. Because the targeting methods hadn't been tested, investors didn't come to an agreement with Foursquare on how much the company was worth.
Rather than raising equity and debating the $600 million valuation with venture capitalists, the company took on debt from two sources — a loan from a Silver Lake Management LLC debt fund and convertible notes, which can be changed into shares later, from investors that already owned pieces of Foursquare.
The company has been putting the money to work. Foursquare hired about 20 more people for its engineering and sales teams, and has started opening up its advertising platforms to businesses that want to create their own promotions. The company's first international customers are among the thousands using the service so far, Rosenblatt said.
"We're ramping up as fast as we can," he said, noting that the company has had some single advertising purchases of more than $1 million apiece. "I didn't think we would see a dollar from anyone overseas this year."
In the next three months, Foursquare will have 50 to 100 customers buying the post-check-in advertising product, he said. The self-serve advertisements will be open to the company's entire base of merchants by the end of the year.
The company still sees about 6 million users checking into locations each day — a rate that hasn't changed since April. To help boost the figure, the startup updated its mobile applications on iOS and Android operating systems, plus a new version for Windows 8. The updates included a feature that lets people check their friends into locations in addition to themselves.
The company said Thursday it's also unveiling a technology that will send users automatic recommendations when they visit a new restaurant or neighborhood, without having to open the application.
Foursquare has helped Microsoft by making an application for its Windows 8 operating system, which has had trouble attracting developers because of the popularity of Google's Android and Apple's iOS software for smartphones and tablets.
(c) 2013, Bloomberg News
Microsoft vying with American Express for stake in Foursquare
Microsoft vying with American Express for stake in Foursquare
Saudi Fund for Development approves grant for King Salman Hospital in Pakistan — PM
- Project will be built in Hazara district with SFD grant of $40 million
- Riyadh also approves $1.2 billion oil deferred oil payment facility
ISLAMABAD: Prime Minister Shehbaz Sharif said on Feb. 6 the Saudi Fund for Development had approved a $40 million grant to build the King Salman Hospital in Pakistan’s northwestern Khyber Pakhtunkhwa province.
The announcement comes a day after Pakistan signed an agreement with SFD to defer by one year a $1.2 billion payment on the country’s oil imports.
SFD has supported more than 40 projects and programs valued at approximately $1.4 billion to finance energy, water, transportation and infrastructure projects in Pakistan since the Fund’s establishment in 1975.
“There are other SFD projects like the King Salman Hospital with an investment of $40 million” Sharif said while addressing a federal cabinet meeting in which he thanked Saudi authorities for approving the $1.2 billion oil facility. “These are grants and the hospital will be fully built with this in Hazara [district].”
The Saudi facility to defer oil payments can help Islamabad boost its foreign reserves ahead of the first review of a $7 billion International Monetary Fund bailout, due in March. The agreement comes as Pakistan continues to navigate a tricky economic recovery path and implement tough conditions attached to the IMF loan program.
“Our brother Crown Prince Mohammed bin Salman sent a delegation yesterday [Feb. 4] and our oil facility which was for 10 months in 2023 ended in December 2023,” Sharif added. “Now, it has been renewed and they have provided us with $1.2 billion annually for our oil facility.”
On Monday, Pakistan also finalized a loan agreement for a Gravity Flow Water Supply Scheme in the Mansehra district of KP under which the SFD will provide $41 million to enhance access to clean drinking water for at least 150,000 people, according to Sharif’s office.
The SFD has also proposed a partnership with the Pakistan government to offer training programs for young Pakistanis and impart “modern and relevant” skills to help them meet labor market demands in Saudi Arabia.
Pakistanis constitute one of the largest migrant communities in Saudi Arabia with an estimated 2.64 million working there as of 2023. While 97 percent of them are blue-collar workers, there is a growing demand for skilled labor in the Kingdom as it seeks to modernize its economy under the Vision 2030 scheme.
Oil Updates — prices decline amid rising US crude inventories, Sino-US tariff war
SINGAPORE: Oil prices slid on Wednesday as rising stockpiles in the US and market worries about a new Sino-US trade war offset President Donald Trump’s renewed push to eliminate Iranian crude exports.
Brent crude futures were down 39 cents, or 0.51 percent, at $75.81 a barrel by 7:27 a.m. Saudi time. US West Texas Intermediate crude (WTI) lost 26 cents, or 0.36 percent, to $72.44.
Oil on Tuesday traded in a wide range, with WTI falling at one point by 3 percent, its lowest since Dec. 31, after China announced tariffs on US imports of oil, liquefied natural gas and coal in retaliation to US levies on Chinese exports.
Prices rebounded, however, after Trump restored the “maximum pressure” campaign on Iran to curtail its nuclear program he enacted in his first term that cut Iranian crude exports to zero.
Weighing down the market on Wednesday was the higher-than-expected US crude inventories data overnight, said Jun Rong Yeap, a market strategist at IG.
Crude stocks rose by 5.03 million barrels in the week ended Jan. 31, according to market sources, citing American Petroleum Institute figures.
Gasoline inventories rose by 5.43 million barrels, and distillate stocks fell by 6.98 million barrels, the API reported, according to the sources.
Official US government oil inventory data is due to be released at 6:30 p.m. Saudi time on Wednesday.
Rising crude and fuel stockpiles in the world’s biggest oil consumer signal consumption weakness, adding to investor worries about the impact of tarrifs on the global economic and energy demand outlooks.
The impact of China’s retaliatory tariffs on US energy imports will be limited “given that neither global supply nor demand of these commodities are changed by China’s tariffs,” analysts at Goldman Sachs said in a note on Tuesday.
Both countries will be able to find alternative markets, the note said.
As for Iran, Trump on Tuesday restored his “maximum pressure” campaign on Iran that includes efforts to drive its oil exports down to zero in order to stop Tehran from obtaining a nuclear weapon.
While Trump said he was open to a deal with Iran, he signed a presidential memorandum re-imposing Washington’s tough policy on Iran. The plan could impact about 1.5 million barrels per day of oil that the country exports, analysts at ANZ said on Wednesday, citing shiptracking data.
“The clampdown on Iran may be what is needed to stabilize bearish sentiments for oil prices for now and there may room for further recovery, at least in the near term,” said IG’s Yeap.
Saudi Arabia’s Debt Capital Market set to reach $500bn by end of 2025: Fitch Ratings
RIYADH: Saudi Arabia’s Debt Capital Market is expected to hit $500 billion by the end of 2025, fueled by the Kingdom's economic diversification efforts under Vision 2030, according to Fitch Ratings.
In its latest report, Fitch highlighted several factors contributing to this growth, including the government’s need for deficit funding, maturing obligations, and continued reforms.
The DCM, which involves the trading of securities like bonds and promissory notes, serves as a key mechanism for raising long-term capital for both businesses and governments.
Fitch also noted that the DCM in the Gulf Cooperation Council region had surpassed the $1 trillion mark by November 2024, bolstered by strong oil revenues. The agency predicts continued growth, with the GCC region expected to remain one of the largest emerging-market issuers of dollar-denominated debt through 2025.
“Saudi Arabia’s sukuk market maintains a strong credit profile, with 97.4 percent of Fitch-rated Saudi sukuk rated investment-grade and 98 percent of issuers holding a stable outlook. Notably, no Fitch-rated Saudi sukuk or bonds defaulted in 2024,” said Bashar Al-Natoor, global head of Islamic finance at Fitch Ratings.
He added: “2025 has started strong, with a growing pipeline of issuances. We expect the market to surpass $500 billion by year end, driven by Vision 2030 initiatives, robust government support, and favorable funding conditions.”
Fitch’s analysis further said that Saudi Arabia became the largest dollar-denominated debt issuer in emerging markets (outside of China) and the world’s largest sukuk issuer in 2024. The Kingdom’s DCM grew by 20 percent year on year in 2024, reaching $432.5 billion in outstanding debt.
The report also emphasized the increasing importance of environmental, social, and governance debt in the region, with $18.6 billion in outstanding ESG-related bonds in 2024.
Saudi banks have significantly expanded their international DCM activities since 2020, aligning with their growth strategies and foreign-currency requirements. Additionally, corporates are diversifying their funding sources, moving beyond traditional bank loans, according to Fitch.
In another report, Fitch projected that global ESG sukuk issuances will exceed $50 billion in outstanding debt by 2025, driven by major Islamic finance markets like Saudi Arabia and Indonesia. The agency noted a 23 percent year-on-year growth in global ESG sukuk, which reached $45.2 billion in 2024, outpacing the 16 percent growth in global ESG bonds.
Saudi Cabinet approves cooperation agreement with WEF to secure minerals for development
RIYADH: Saudi Arabia’s Cabinet has authorized the Ministry of Industry and Mineral Resources to sign a cooperation agreement with the World Economic Forum to secure critical materials for global development.
According to the Saudi Press Agency, the Cabinet — chaired by Crown Prince Mohammed bin Salman — gave the green light for the deal among a host of decisions.
Strengthening the mining sector is a crucial goal outlined in the Kingdom’s Vision 2030 agenda, as the nation is steadily spearheading its economic diversification journey by reducing its reliance on crude revenues.
Speaking at the Future Minerals Forum in Riyadh in January, Alkhorayef said that Saudi Arabia seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the Kingdom’s plans to establish mining as the third pillar of its industrial economy.
At that time, the minister added that Saudi Arabia’s mining sector is the fastest growing globally, with the country holding an estimated mineral potential worth $2.5 trillion.
New International Retail Council launched in Riyadh
RIYADH: An International Retail Council designed to unite top experts, decision-makers, and industry stakeholders has been launched at an industry event in Riyadh.
Announced at the Retail Leaders Circle Global Forum, event chairman Panos Linardos said the new body will tackle upcoming challenges and opportunities facing the sector across the globe.
This year’s gathering, taking place from Feb. 4 to 5, comes as the Kingdom’s retail sector continues to show strong resilience and sustained growth, with total sales reaching SR37.4 billion ($9.97 billion) in the third quarter of 2024, despite ongoing global economic uncertainties.
Retail sales in the Kingdom are forecast to reach $161.4 billion by 2028, according to data platform Statista, while the e-commerce sector is projected to surpass $13.2 billion by 2025.
Setting out the importance of the new council, Linardos said: “The IRC is not just another industry initiative — it is a forward-thinking response to an evolving global landscape.”
He added: “Retail is more interconnected than ever, yet faces growing complexity in regulation, technology, and consumer behavior. The IRC will unite leaders, visionaries, and experts to facilitate global dialogue, drive innovation, and shape policies that will define the industry’s next era.”
During his speech, the chairman highlighted that the IRC will initially focus on four key pillars shaping the future of commerce: luxury goods, retail real estate, cross-border trade, and grocery businesses.
Linardos also shed light on how geopolitical changes, economic volatility, supply chain challenges, and the rapid growth of artificial intelligence, as well as digital commerce, are transforming the retail industry at an unprecedented rate.
“The rules of global trade are being rewritten, cross-border commerce is evolving, and consumer expectations are shifting faster than ever before. In this moment of transformation, the need for collaborative leadership, innovation, and a strategic vision for the future of retail has never been greater,” he said.
The chairman added that the discussions at the forum will reflect shared goals and help lay the groundwork for actionable solutions.
Held under the theme “Rebuilding a Shared Future,” the event commenced with the “Business Outlook: Navigating A New Global Order” session.
It explored how geopolitical tensions, economic instability, and fast-paced technological advancements are affecting global commerce, with international business leaders sharing strategies to turn volatility into opportunity while fostering resilience and innovation.
Another session titled “A New Leadership Order: Building Growth in Turbulent Times” followed, highlighting the importance of leadership in overcoming economic challenges, boosting productivity, and promoting sustainable growth.
Industry experts shared strategies during the session for navigating complex business environments and using strategic adaptability to succeed in a constantly changing marketplace.
Discussions also centered on the transformative impact of social commerce, which is changing how consumers shop, engage with brands, and interact online.
With e-commerce in the Middle East expected to reach $57 billion by 2026, the importance of marketplaces in meeting shifting consumer expectations is crucial.
Chief Content Officer at EMARKETER Zia Daniell Wigder presented a report created in collaboration with the RLC Global Forum which offered a data-driven roadmap for the future of e-commerce in the Gulf Cooperation Council, providing valuable insights into consumer trends, market dynamics, and opportunities for sustainable growth in the region.
AI was another key focus of the day, with several sessions exploring its transformative impact on the retail sector.
Industry leaders discussed how the technology is being leveraged to enhance personalization, optimize supply chains, and improve operational efficiencies at scale.
According to a new report released by Knight Frank, Riyadh and Jeddah are driving a major transformation in Saudi Arabia’s lifestyle retail sector, reshaping the retail scene with 394,900 sq. meters of upcoming developments, all scheduled for completion by 2027.
The report further disclosed that the planned developments include food and beverage outlets, entertainment options, and lively public spaces.
Both major Saudi cities currently provide 670,500 sq. meters of lifestyle retail space, reflecting a 12 percent surge over the past year.
In Riyadh, the average lease rate for retail spaces is SR2,360 per sq. meter, with a 96 percent occupancy rate, while in Jeddah, lease rates average SR2,030 per sq. meter, with an occupancy rate of 70 percent.
