Twitter has held talks to acquire Clubhouse for $4 Billion: Report

Micro-messaging app Twitter was in talks to acquire audio-only chat app Clubhouse for $4 Billion, reported Bloomberg on Wednesday. Both the companies have not commented on the matter, but people familiar with the matter suggest that the deal is closeted. Is this a move by Twitter to simply dissolve the competition, or to expand its new feature -Twitter Spaces? The reason is unknown.

In fact, the report suggests that both the companies have discussed a potential valuation of roughly $4 billion for Clubhouse. Although the discussion is at standstill, Clubhouse is looking to raise approx $4 Billion from investors. Thus, the acquisition value makes sense.

About Clubhouse App

The Clubhouse app is a new type of social media that promotes only audio conversations. That’s right – when you open the app you can see “rooms” full of people talking. They can start a conversation on their favourite topic and raise a hand for a turn to talk. According to the developers, the Clubhouse app promotes meeting new people around the world—to tell stories, ask questions, debate, learn, and have impromptu conversations on thousands of different topics.

Apart from Twitter, the App faces competition from a lot of competitors, including Facebook, Discord, LinkedIn, and Slack, among others.

About Twitter Spaces

Twitter’s Clubhouse competitor, called Spaces, launched in late 2020. It is a place to help bring people together to connect directly in an intimate, conversational Space. In fact, with its acquisition of Podcast App, Breaker, Twitter gained key talent and expertise to create a buzz in the upcoming podcast market. The feature is still in beta form and not all users can create or host public discussions. In fact, CEO Jack Dorsey and the team aim to monetise the feature, but it is still in the early stages.

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