Twitter Considered Acquisition of Clubhouse for $ 4 Billion: Report

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Twitter Inc. briefly reflected on the $ 4 billion acquisition of Clubhouse before talks broke down, according to a new report. A Bloomberg News report, citing unidentified sources, said that the microblogging service in recent months considered an acquisition. But after the discussions ceased, the Clubhouse began exploring ways to raise funds from investors in a round that values ​​the business at around $ 4 billion, according to another Bloomberg report.

A spokesperson for Twitter TWTR, + 2.97% said the company does not comment on rumors or speculation. Clubhouse was not immediately available for comment. Shares of Twitter, which rose 3% during the regular trading session, were unchanged in extended trading on Wednesday. The invitation-only audio chat app, launched less than a year ago, has caught the attention of Facebook Inc. FB, + 2.23% from CEO Mark Zuckerberg and Tesla Inc. TSLA, -2.99% from CEO Elon Musk, as well as from the Chinese. government, which has blocked the application in that country. Facebook, Microsoft Corp.’s MSFT, + 0.82% LinkedIn and Inc.’s CRM, -0.14% Slack Technologies Inc. are among the companies said to be developing Clubhouse-like features for their networks . Twitter Clubhouse competitor Spaces debuted in late 2020, though it is still in beta form. The company is considering ways to monetize Spaces, Bruce Falck, Twitter’s head of revenue product, said at a press event Wednesday. Clubhouse says it has more than 10 million active users each week, including Zuckerberg, Musk, Mark Cuban, and Oprah Winfrey.