Social media giant Twitter reportedly held talks in recent months to acquire the popular startup app Clubhouse for $4 billion, which is touted as an audio-based social media network and has received significant attention for its chat sessions featuring the leading lights of Silicon Valley.
A recent report from Bloomberg states that Twitter held talks in recent months to acquire the popular audio-based social network Clubhouse. The companies reportedly discussed a potential valuation of around $4 billion for Clubhouse, according to sources who wished to remain anonymous.
Discussions for Twitter to purchase the app are allegedly no longer ongoing and it is unclear why negotiations broke down. A Twitter spokesperson declined Bloomberg’s request for comment. Bloomberg News reported just earlier this week that Clubhouse was in talks to raise funding from investors in a round valuing the business at about $4 billion.
After discussions with Twitter broke down, Clubhouse began exploring whether it made sense to raise financing at that valuation. The app allows users to host audio chat rooms where people can join in to listen or discuss various topics. The Masters of the Universe including Mark Zuckerberg have virtually held court using the app to discuss the future of technology.
Despite being barely a year old, Clubhouse has attracted some of the biggest names in business and Hollywood to the platform and multiple existing tech firms have begun development of apps with similar features to Clubhouse, including Facebook, LinkedIn, and Slack.
Twitter’s Clubhouse competitor Spaces launched in late 2020 and is still currently in beta form, but Twitter CEO Jack Dorsey seems to believe that audio interaction could be a big area of growth for Twitter in the future.
It has also recently been reported that Microsoft is in talks to purchase the gaming-focused chat community Discord for more than $10 billion. Discord is known for its free service allowing gamers to communicate by video, voice, and text. During the pandemic, the software has increasingly been used for study groups, dance classes, book clubs, and other virtual gatherings.
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