04 May 2021
Twitter is reported to have held discussions with Clubhouse over an acquisition proposal. It was interested in buying the popular audio-only social media platform for about $4 billion. The report is coming from Bloomberg citing anonymous sources familiar with the internal matters. These talks were held in the past few months but nothing is going on at the moment.
The exact details surrounding the discussions are unknown. The report does not mention which of the two parties made the first move and exactly why did it fall through. Clubhouse is now said to be exploring the possibility of raising funds through investors. It is hoping to set the round around the same valuation of $4 billion that Twitter showed interest in acquiring.
For the uninitiated, Clubhouse is a platform that lets users host rooms where they can host sessions surrounding any topic of their choice. A room can be either public or private where the former allows anyone on the platform to join. The host also has the power to assign who else in the room can be a speaker and become an active participant in the conversation. It came into existence in 2020 but has gained significant popularity since the start of this year as many influential personalities like Mark Zuckerberg and Elon Musk joined the network.
As for Twitter, it has been working on its own audio-only offering called Spaces. It was under beta testing for quite some months and has expanded to a larger group for some reasons. It has also started to gain some traction within Twitter's existing userbase and could be the reason behind the proposal not materializing into anything more.