Report: Facebook Looking at Loopt

Loopt has been scrambling to reinvent itself and gain traction -- despite its longevity in LBS -- in order to not be made totally irrelevant by more visible competitors: Facebook, Yelp, Foursquare and mobile couponers. While it's still possible that Loopt would find the right mix of offerings or the right formula to succeed as an independent company that train has probably left the station.

TechCrunch, which loves to report rumors and tech gossip that also often turn out to be correct, is saying that Facebook is doing due diligence on Loopt. Facebook is the dominant mobile social network and a general force to be reckoned with. I recently speculated that it was only a matter of time before the company became a mobile ad network or platform. 

I had previously predicted that Facebook would buy Foursquare but that looks less likely now because of Foursquare's deals with large media companies. It still could happen. But if Facebook were to buy Loopt what exactly would it be buying? It would be potentially getting some mobile development expertise and some technolgy as well as some carrier relationships (but it already has those). 

It wouldn't be getting and doesn't need mobile users, with 100 million active mobile users of the site. Thus the price is likely to be a big sticking point. Loopt has raised just under $20 million. Loopt's investors will likely want something approaching or exceeding $100 million. My guess is that what Facebook gets from Loopt won't be valued at that level. We'll see. 

Loopt will ultimately have to sell itself because I think its time has come and gone. I could always be wrong of course.