Social media platform Twitter Inc. was in discussion to acquire audio-based network Clubhouse but talks have since collapsed, according to Bloomberg.
- Discussions entailed a potential valuation of roughly $4 billion for Clubhouse, but are no longer ongoing. It is unclear why the talks stalled.
- A spokesperson for Twitter declined to comment, while a Clubhouse representative did not immediately respond to a request for comment.
- After talks with Twitter failed, Clubhouse explored the possibility of raising funds at the same valuation instead.
- Social media companies including Twitter, Facebook Inc., LinkedIn, and Slack Technologies Inc. are now working on their own versions of Clubhouse which lets users host their own online radio shows.
- Twitter Chief Executive Officer Jack Dorsey is bullish on the potential for audio as a nwe means of interaction on the platform. The company has long bet on live content through partnership deals and acquisition.
- Twitter is considering ways to monetize Spaces which competes with Clubhouse, but talks are in the very early stages. Spaces is also still in beta form, and not all users can create or host public discussions.