Twitter Inc recently was in talks to acquire Clubhouse, the heavily hyped live-audio social media app, in a deal worth $4 billion, Bloomberg reported, citing anonymous sources.
Bloomberg News reported earlier this week that Clubhouse is in talks to raise funding from investors in a round valuing the business at about $4 billion. After the talks with Twitter failed to proceed, Clubhouse began to explore whether it made sense to raise financing at that valuation instead. The app 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.
When asked about the report, a Twitter rep said, “We don’t comment on rumours or speculation.” Clubhouse didn’t immediately respond to a request for comment.
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.
Interestingly, the news comes at a time when Twitter is developing a similar feature called Spaces. Spaces are live audio chatrooms in which Twitter users host a variety of conversation topics, from tech to popular culture.
According to the report, the discussions between the two companies have however since ended.