Photographer: Thomas Trutschel / Photothek / Getty Images
Photographer: Thomas Trutschel / Photothek / Getty Images
Twitter Inc. held talks in recent months to acquire Clubhouse, the bustling audio-based social network, according to people familiar with the subject.
The companies discussed a possible valuation of about $ 4 billion for Clubhouse, people said, asking that it not be identified because the matter is private. Debates are no longer ongoing and it is unclear why they stalled, people added.
A Twitter spokesman declined to comment. A Clubhouse representative did not immediately respond to a request for comment.
Bloomberg News reported earlier this week that the Clubhouse is in talks to raise investor funding in a round valuing the business at about $ 4 billion. After conversations with Twitter did not continue, Clubhouse began exploring whether it made sense to increase funding on that valuation. The application allows users to host their own online radio programs. Listeners can tune in to listen to interviews or roundtables and ask to participate in live chats.
Clubhouse is barely a year old, but has taken part in some of the most important names in the business world and Hollywood. Social media-based companies have quickly gone to work on their own versions of Clubhouse, including Twitter. Facebook Inc. is exploring one, and LinkedIn and Slack Technologies Inc. by Microsoft Corp. they have also said that they work on similar functions for their networks.
Shares of Twitter rose about 3 percent Wednesday, giving the San Francisco-based company a market value of $ 55.1 billion.
The competitor of the Twitter Clubhouse, called Spaces, was launched in late 2020, although it is still in beta and not all users can create or organize public debates. CEO Jack Dorsey is optimistic about the potential of audio as a new way to interact on Twitter, and the company has long been committed to live content through acquisitions and collaboration agreements. At a news event Wednesday, Twitter revenue product chief Bruce Falck said the company is looking at ways to monetize Spaces, but those discussions are still in the early stages.
– With the assistance of Ellen Huet