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April 12, 2021

Twitter reportedly considered buying Clubhouse for $4 billion

Following the huge success of Clubhouse, companies like Twitter and Facebook have started working on their own live audio chat platforms. Interestingly enough, it appears that Twitter has already considered acquiring Clubhouse for a whopping $4 billion — though the plan hasn’t materialized as expected.

As Bloomberg reported, Clubhouse is in talks to raise funds from investors. However, one of the companies that has negotiated with Clubhouse is none other than Twitter. The report says that both companies have been in talks “in recent months,” according to the sources.

Twitter Inc. has been in talks for the past few months to acquire Clubhouse, the buzzing audio-based social network, according to people familiar with the matter. The companies discussed a potential valuation of about $4 billion for Clubhouse, the people said, asking not to be identified as the matter is private.

While Twitter considered buying Clubhouse, the company has already given up on that idea for an unknown reason. It’s not hard to imagine the social network realizing that its own clubhouse alternative called Twitter Spaces could become even more popular without having to buy another app.

Clubhouse was introduced in 2020 but only became popular in early 2021 after several celebrities such as Mark Zuckerberg and Elon Musk joined the platform. For those unfamiliar with the app, Clubhouse allows users to chat with others via live audio in different rooms. The app, which remains an iPhone exclusive, reached more than 8 million downloads on the App Store in February this year.

At the same time, Facebook, LinkedIn and even Spotify are working on similar features for their apps. Bloomberg says Clubhouse is still looking for investment, but the social network’s future is uncertain given growing competition.

Source: 9to5mac

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