Photographer: Thomas Trutschel / Photothek / Getty Images
Photographer: Thomas Trutschel / Photothek / Getty Images
Twitter Inc. has been in talks in recent months to acquire Clubhouse, the audio-based social network, according to people familiar with the matter.
The companies discussed a potential valuation of about $ 4 billion for the clubhouse, people said, asking not to be identified because the issue is private. The talks are no longer ongoing and it is not clear why they were blocked, 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 speaks to raise funding from investors in a round, valuing the business at about $ 4 billion. After discussions with Twitter failed to take place, Clubhouse began exploring whether it makes sense to raise funding for this assessment. The application allows users to host their own online radio shows. Listeners can adjust to listen to interviews or group discussions and request to participate in live chats.
The clubhouse is only a year old, but has attracted appearances from some of the biggest names in business and Hollywood. Well-known social media companies quickly began working on their own versions of the Clubhouse, including Twitter. Facebook Inc. is exploring one, and LinkedIn and Slack Technologies Inc. of Microsoft Corp. they also stated that they are working on similar functions for their networks.
Twitter shares rose about 3 percent on Wednesday, giving the San Francisco-based company a market value of $ 55.1 billion.
Twitter’s Clubhouse competitor, called Spaces, was launched in late 2020, although it is still in beta and not all users can create or host public discussions. CEO Jack Dorsey is optimistic about audio potential as a new way for people to interact on Twitter, and the company has long bet on live content through partnership transactions and acquisitions. At a news event on Wednesday, the head of Twitter’s revenue product, Bruce Falck, said the company is considering ways to monetize the space, but those talks are still in their infancy.
– With the assistance of Ellen Huet