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Twitter Had Held Negotiations With Clubhouse For A $4 Billion Acquisition Bid


04/08/2021


Twitter Had Held Negotiations With Clubhouse For A $4 Billion Acquisition Bid
Talks to acquire the buzzy audio-based social network - Clubhouse, were held by Twitter Inc. in recent months, said a report published by Bloomberg quoting sources that were familiar with the matter.
 
The report also quoted the unnamed sources as saying that the discussions between the two companies went so far as to value the Clubhouse at about $4 billion. The report however added that the negotiations are not happening any longer and Bloomberg was unsure about whether the talks had stalled.
 
There was no comment on the report available from representatives of Twitter as well as Clubhouse.
 
In reports published previously this week, negotiations were being held by Clubhouse for a fundraising round with investors in a round that the company wants to value itself at about $4 billion.
 
According to those previous reports, Clubhouse had started to explore whether it made sense to raise funds for itself instead of putting its valuation at stake, after its negotiations with Twitter failed to proceed any further.
 
The Clubhouse app allows its users to host their own online radio shows. Other users and listeners of the app are allowed to listen to interviews or panel discussions and even request the hosts of shows to allow them to participate in live chats.
 
Even though Clubhouse is not even a year old, the app has already seen appearances on shows on the app from some of the biggest names in business and Hollywood. This quick success of the app has also driven other established social media companies to explore ways to add a similar feature on their app – including efforts made by Twitter. A similar feature is also being worked on by Facebook – the largest social media platform of the world, while Microsoft Corp.’s LinkedIn and Slack Technologies Inc. have also said they are also planning to develop a similar radio show hosting feature on their networks.
 
As of Wednesday, the market valuation of the San Francisco based Twitter was at $55.1 billion as its stocks rose by about 3 per cent.
 
Twitter had launched its competitor for Clubhouse called Spaces just in 2020. That app is still in beta form and it currently does not allow all of its users to create or to host public discussions.
 
According to Twitter’s Chief Executive Officer Jack Dorsey, there is great opportunity in including an audio based app or feature as he believes that would be a new way for people to interact on Twitter. As it is, the company has been pursuing a strategy of promoting live content through partnership deals and acquisitions.
 
The company is considering ways to monetize Spaces, said Twitter head of revenue product Bruce Falck at a press event on Wednesday but added that those discussions are still at the preliminary stages.
 
(Source:www.bloomberg.com)