Facebook to Challenge Foursquare and Gowalla with Hot Potato deal

Online social networking giants “Facebook” are nearing their deal to acquire “Hot Potato” the social media site which launched last year giving users accessibility to events in their area through the site or the Apple iPhone app. Hot Potato has been battling it out against competitors Foursquare, Gowalla amongst others.

According to Martin at Intomobile, the deal if agreed will be in the region of $10 million, will see Facebook expand with a location-based service and check-in system. Reports have indicated that the Facebook check-in service will possibly be launching with McDonald’s as a partner. With this on the cards users could benefit from discounts whilst “checking-in” at the fast food restaurant. Comments from Facebook’s Erick Tseng, has said “that Facebook want to become a mobile platform and check-in services could be an important part of that strategy”.

How well will this deal fair? If Facebook acquires this check-in service will it outdo competitors Foursquare or Gowalla. Facebook need to make the service fairly unique and powerful to get users interested and to draw them in.

As a user will you be interested in “Hot Potato”? Would you consider using this to find out events, where friends are located and to receive discounts? To read more about this check out Intomobile.