(Adds previous valuation)

SAN FRANCISCO, Dec 22 (Reuters) - Foursquare, which makes apps that let users find restaurants and stores and "check" into them, is discussing a funding round that would set its value at $250 million, less than half its worth two years ago, tech news site Re/code reported on Tuesday, citing sources.

The site also said the company had talked to potential buyers. (http://on.recode.net/1NBigrS)

Re/code said the funding round would raise between $20 million and $40 million and would include one new investor, which it did not name.

Foursquare raised $35 million in a fundraising round in 2013. The Wall Street Journal reported at the time that round valued the company at $650 million, citing people familiar with the transaction.

Foursquare has been the subject of takeover speculation, with Yahoo Inc being reported more than once as a potential buyer.

Foursquare declined to comment on the Re/code report.

(Reporting by Sai Sachin R in Bengaluru; Editing by Stephen R. Trousdale and Sandra Maler)