“Most of the investors I spoke with had no idea what was going on, and what if anything they?d be receiving back for their dollars in,” stated CrunchFund founder Michael Arrington when talking about Facebook’s acquisition of Gowalla. Gowalla CEO Josh Williams confirmed yesterday that Facebook had acquired them. Gowalla is shutting down their service and their team is spreading between Facebook’s offices in Austin and Palo Alto.
Should the investors be upset about the deal? No because Foursquare was kicking their butts anyway. Foursquare is growing at about 10 million new users per year while Gowalla is struggling to keep up. Investors were pretty much accepting the fact that they would not see their money back after putting it in Gowalla. At least they are getting something in return.