Yesterday Louis Gray pieced together vague snippets of information from tweets made by the founders and investors of Foursquare and Brizzly to speculate that Foursquare was negotiating to buy Brizzly. Later that day the speculation was denied by all parties involved. To (loosely) quote Mandy Rice-Davies: "They would deny it, wouldn't they?" ... I don't think this story is over.
Nonetheless the details of the speculated transaction are not our topic today. Instead, I'd like to consider the process which led to it. For decades government (and sometimes corporate) intelligence operations have had access to reams of communications data from which to make inferences. They could see who was calling whom, where letters and packages were being delivered, and know people's movements to some extent via airline manifests. Intelligence agencies are famous for collecting massive amounts of information and using algorithms to look for patterns, to be followed up by a human analyst.
We're rapidly moving into a world where a significant amount of that information is available to anyone who cares to look for it. We're using social networks which broadcast our updates publicly, either deliberately or because we don't understand the privacy settings. We're rapidly integrating location data into online applications, which people willingly share if they see a benefit from it. As the tweets Louis quoted show, people also love making coy hints about their dealings, secure in the knowledge that nobody will figure out such a vague hint. Yet given enough vague data, particularly if one is aware of existing connections between the participants, correlations can be found. Certainly there will be false positives, but there will also be some real gems.
Systematic data mining of social networks, both their contents and the metadata they contain, in order to gain competitive advantage has enormous implications. It apparently is already happening: military raids have been cancelled due to leaks on social networks, showing that government agencies are concerned about the possibility. For the most part it won't be reported on, and will become just another part of the Internet underpinnings.