Talks ultimately stalled, but the price tag shows just how hot Clubhouse is right now.
Twitter held talks, which ultimately stalled, about acquiring the invite-only social audio iPhone app Clubhouse, Bloomberg reports.
Clubhouse only burst onto the scene in April 2020, right at the time that the coronavirus pandemic was causing lockdowns in large parts of the world. Since then, it has become one of the most talked-about new apps—with tech companies scrambling to create their own rival versions.
That buzz has brought with it a pretty healthy valuation, too, with Twitter reportedly valuing Clubhouse at a massive $4 billion.
Talks Have Ceased
The report cites sources “familiar with matter” who asked “not to be identified because the matter is private.” It notes that talks with Twitter are reportedly no longer going on, although it is not clear why they stalled. Neither Twitter or Clubhouse made a comment on the reported negotiations.
Bloomberg writes that:
“After the talks with Twitter failed to proceed, Clubhouse began to explore whether it made sense to raise financing at that valuation instead.”
According to Crunchbase, Clubhouse has so far raised $110 million, and has only a small team, including co-founder and CEO Paul Davison, co-founder Rohan Seth, and investor Rahul Vohra. Based purely on return-on-investment, that makes a $4 billion valuation a pretty astonishing price tag. Then again, buzzworthiness carries a pretty big premium, especially in the social media sphere.
The Coming Clubhouse Clones
To date, it is reported that Twitter, Facebook, Slack, and Microsoft’s LinkedIn are all working on their own versions of Clubhouse-adjacent services (read: Clubhouse copycats) to add to their current services.
Now the world will just have to sit back and see which of them is worth a few billion dollars of added market cap a year from now.
If you’ve heard the name but don’t know anything the app, read onto find out what Clubhouse is and why it’s making headlines.
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