The acquisition makes perfect sense in my mind. Facebook Timeline is about telling the story of your life. Gowalla is a mobile app focused on telling the story of your travels. Integration of Gowalla’s technology into the Facebook mobile app will make it possible to better chronicle your life story via mobile.
My guess is that Facebook didn’t have to pay a high price for Gowalla. The company failed as a direct competitor to Foursquare and, from what I can tell, its user growth was stagnant.
Still, Gowalla is a beautiful app with good technology. Congrats to Josh Williams and his team on the acquisition.