Facebook Serious about "Places"

So serious that Facebook bought Hot Potato, an online "check-in" service that lets users report their whereabouts and activities to friends, the company announced on Friday.

It is the most recent development in Facebook's efforts to juice up the location-based aspect of its hugely popular service, which lets people connect with friends and family via the Web and share thoughts, links, photos, and more.

This week Facebook unveiled Facebook Places, a feature that enables Facebook account holders to advertise their current location to friends, and lets users of check-in sites such as Foursquare to  post such location-based reports to those sites and to Facebook at the same time.

 Hot Potato didn't give any financial details of the buyout. Figures tossed around during earlier, and ultimately fruitless, buyout talks between Facebook and Foursquare were in the neighborhood of $120 million to $140 million, but at this point it's anyone's guess as to whether such figures are apropos to the Hot Potato acquisition.

Hot Potato said it was no longer accepting new registrations for its service and that it would give current users some time to download the information they'd posted to Hot Potato, should they want to preserve it in some way. The service also said that in about a month, it would shut its doors and all user data would be deleted, and not automatically passed on to Facebook. The company said it would keep current users posted until then.

Location-based check-in services have been generating buzz for some time now, with services like Hot Potato putting a new spin on pioneer Foursquare's initial model, where friends share their neighborhood secrets.

What will be Facebook's next move?

Facebook now has a Check-in Feature

On the heels of Foursquare and Gowalla, Facebook now has a check-in feature of its own.

Facebook executives on Wednesday announced the launch of Facebook Places, which -- similar to services such as Foursquare and Gowalla -- will allow people to use the GPS on their mobile phones to let friends know exactly where they are.

Facebook Places is available immediately in the United States through the latest version of Facebook's iPhone app and through the company's site for advance mobile devices.

Foursquare has become the clear leader or check-in apps and a darling of tech media, even as it looks for ways to turn a profit. Boasting a half-million users at the start of SXSW, Foursquare doubled that in about a month then needed only another three months to reach 2 million users.

In regards to check-in apps, users "check in" at restaurants, bars, movie theaters or just about anywhere else they visit. The idea is twofold -- to let friends know what you're up to while racking up points and earning virtual badges in the application's gaming element.

The potential for Facebook Places is huge.  With a half-billion users, if Facebook doesn't blow it, they should be able to take this area over.  We''ll have to see what early reviews look like and how fast it starts taking off.