Photographer: Thomas Trutschel / Photothek / Getty Images
Photographer: Thomas Trutschel / Photothek / Getty Images
According to people familiar with the matter, Twitter Inc. in recent months, discussions have taken place to acquire Clubhouse, the social sound-based social network.
The people discussed a possible valuation of about $ 4 billion for Clubhouse, the people said and asked not to be identified because the matter is private. Discussions are no longer lasting and it is unclear why it got stuck, the people added.
A Twitter spokesperson declined to comment. A representative of the clubhouse did not immediately respond to a request for comment.
Bloomberg News reported earlier this week that Clubhouse is in negotiates to value investor funding in a round that values the company at about $ 4 billion. After talks with Twitter could not continue, Clubhouse began investigating whether it made sense to raise funding at the valuation instead. With the app, users can host their own online radio programs. Listeners can tune in to hear interviews or panel discussions and ask to participate in live chats.
Clubhouse is barely a year old, but has featured some of the biggest names in the business world and Hollywood. Established social media companies quickly began working on their own versions of Clubhouse, including Twitter. Facebook Inc. is also investigating one of them, and Microsoft Corp. ‘s LinkedIn and Slack Technologies Inc. also said they are working on similar features for their networks.
Twitter shares rose about 3% on Wednesday, giving the company a market value of $ 55.1 billion in San Francisco.
Twitter’s Clubhouse rival, called Spaces, was launched in late 2020, though it’s still in beta form and not all users can create or host public conversations. CEO Jack Dorsey is strong about the potential of audio as a new way for people to communicate on Twitter, and the company has long been betting on live content through partnership deals and acquisitions. Bruce Falck, head of the revenue product on Twitter, said during a press conference on Wednesday that the company is considering ways to make money from Spaces, but the discussions are still in the early stages.
– With assistance by Ellen Huet