Twitter reportedly held talks to acquire Clubhouse for $4 billion

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Clubhouse has been the social media darling during the first few months of 2021, with a number of different platforms looking to emulate the audio-only chat app with their own offerings. Twitter is one such platform, currently working on refining its Spaces app to be a rival to Clubhouse’s popularity, but according to a new report the company could simply buy the competition.

According to a report from Bloomberg (paywall), Twitter held talks with Clubhouse to acquire the platform for an estimated $4 billion.

The talks were not recent, however, taking place over the past several months according to Bloomberg’s unnamed sources. The most interesting element to all this is that the reason as to why talks stalled are unknown.

“The companies discussed a potential valuation of roughly $4 billion for Clubhouse, the people said, asking not to be identified because the matter is private. Discussions are no longer ongoing, and it’s unclear why they stalled, the people added,” the Bloomberg report notes.

If we had to hazard a guess, it might be because Clubhouse has designs of its own, having recently unpacked a strategy to get more content creators onto its platform, as well as ironing out any security concerns with the app itself. Another important step that the platform has taken is the ability to facilitate payments for creators, thanks to a partnership with Stripe.

It therefore looks like Clubhouse is wanting to achieve bigger and better things outside of a big pay day following a Twitter acquisition.

There is also the aforementioned Spaces to consider, which has rolled out to Android users, so Twitter may also have big plans on that front as well.

Either way, it looks like Twitter is the best placed to rival Clubhouse currently, but the likes of Facebook and LinkedIn are also vying for a piece of this latest pie.

[Image – Photo by Souvik Banerjee on Unsplash]

Robin-Leigh Chetty

Robin-Leigh Chetty

When he's not reviewing the latest smartphones, Robin-Leigh is writing about everything tech-related from IoT and smart cities, to 5G and cloud computing. He's also a keen photographer and dabbles in console games.