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 buzzing audio-based social network, according to people familiar with the case.
The companies discussed a possible valuation of about $ 4 billion for Clubhouse, the people said, asking not to be identified because the case is private. Discussions are no longer going on and it’s unclear why they stalled, people added.
A Twitter spokesperson declined to comment. A clubhouse representative did not immediately respond to a request for comment.
Bloomberg News reported earlier this week that Clubhouse is in talks about raising funding from investors in a round where the company is valued at about $ 4 billion. After talks with Twitter fell through, Clubhouse began to investigate whether it made sense to raise funding against that valuation instead. The app allows users to host their own online radio shows. Listeners can tune in to interviews or panel discussions and ask to participate in live chats.
Barely a year old, Clubhouse has drawn performances from some of the biggest names in business and Hollywood. Established social media companies are quick to get started with their own version of Clubhouse, including Twitter. Facebook Inc. is also investigating one, and Microsoft Corp.’s LinkedIn and Slack Technologies Inc. have also said they are working on similar features for their networks.
Twitter shares were up about 3% on Wednesday, earning the San Francisco-based company a market value of $ 55.1 billion.
Twitter’s Clubhouse competitor called Spaces launched in late 2020, although it is still in beta form and not all users can create or host public discussions. Chief Executive Officer Jack Dorsey is optimistic about audio’s potential as a new way for people to communicate on Twitter, and the company has long been betting on live content through partnership agreements and acquisitions. At a press event on Wednesday, Bruce Falck, head of Twitter’s revenue product, said the company is considering monetizing Spaces, but those discussions are still in the early stages.
– With the assistance of Ellen Huet