- Twitter held discussions for a $4 billion takeover of Clubhouse.
- The clubhouse is seeking to raise funding at a similar valuation.
- Twitter shares were up about 3% rise on Wednesday, giving the San Francisco-based company a market value of $55.1 billion.
As per the report, Twitter attempted to acquire the audio app for a total sum of around $4 billion. The discussions are going around between the companies. The latest reports tell us that Clubhouse is looking to raise money to further its operations. The company is eyeing funding at a $4 billion valuation, and it is possible that the valuation came out of its possible acquisition talks with Twitter.
At this moment, Twitter declined to comment on the report, while Clubhouse did not immediately respond to a request for comment because the matter is private.
At a press event on Wednesday, Twitter head of revenue product Bruce Falck said
“The company is considering ways to monetize Spaces, but those discussions are still in the very early stages”.
Clubhouse lets users host their own online radio shows. Listeners can tune in to hear interviews or panel discussions and ask to participate in live chats.
The clubhouse is barely a year old but has drawn appearances from some of the biggest names in business and Hollywood. Established social media companies have quickly gone to work on their own versions of Clubhouse, including Twitter. Facebook Inc. is exploring one, too, and Microsoft Corp.’s LinkedIn and Slack Technologies Inc. have also said they’re working on similar features for their networks.
Twitter has its own live audio feature, Spaces, which it aims to make available for all its users this month.
Twitter is working on its product to compete with Clubhouse in the segment. It is hence unclear as to why the tech major wanted to acquire Clubhouse in the first place. Maybe the plans to develop its platform took shape after the acquisition talks were not fruitful. In either case, it is easy to see that Twitter sees a future in the social audio space.
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