Update 12/5/11: Confirmed on Gowalla Blog.
--- original post 12/3/11 ----
APB reported that Gowalla was up for sale on the last day of November, last Wedensday. Google and Groupon were cited as potential buyers. Friday night, Dec 2, CNN reported, based on a single source close to the deal, that Facebook would acquire the location-based networking startup. Neither company has confirmed the deal, for which the source provided no financial details. The source did explain that part of the Gowalla staff would go to work on Facebook's new Timeline feature in San Fracisco, while others joined Facebook's office's in its Austin hometown.