NEW YORK CNNMoney — Facebook has acquired location sharing service Gowalla for an undisclosed sum, according to a source close to Gowalla. Facebook did not immediately respond to a request for comment.

Most of Gowallas employees, including founder Josh Williams, will move to Facebooks offices in Palo Alto. The team will work on Facebooks Timeline feature, which launched at this years F8 conference and is gradually rolling out to Facebooks 800 million members.

Launched in 2009, Austin-based Gowalla went head-to-head with direct rival Foursquare — and lost. Badly trailing Foursquare in user adoption, Gowalla recently shifted directions, recasting itself as a travel guide. The site had raised around $10 million over the years from backers including the Founders Fund, Greylock Partners and a collection of angel investors.

via Facebook acquires Gowalla to boost Timeline team – Dec. 2, 2011.