Bloomberg reports that despite building up its own voice-only social media space, Twitter discussed with Clubhouse about dropping $4 billion on the app.
The conversations between the two companies allegedly stalled and no clear reasoning was given. Also, it’s not clear who approached who first about the potential blockbuster deal. Bloomberg also reports that Clubhouse is currently looking to raise money at a $4 billion valuation. It’s also unclear if that number is a direct result of the conversation between Twitter and Clubhouse or a figure that Clubhouse is throwing out there.
Since its launch last year, the app quickly gained popularity and was valued at $1 billion, thanks in large part to Black creatives who found a myriad of ways to make the app popping. According to The Verge, more than 10 million people have downloaded the app, which is only available on iOS and is still invite-only.
Since then, numerous competitors have surfaced. Facebook, Twitter, Discord, LinkedIn, and Slack are all looking to send Clubhouse to the projects. All have the potential to do so becuase they have millions of users and available on both Andriod and iOS.
Just recently, Clubhouse announced a new tipping feature allowing some creators to make money off the rooms they start and will not be taking a cut of their revenue, which is an interesting payment model.
It’s still unclear why Twitter was even thinking about dropping a bag on Clubhouse, but maybe they just wanted to get rid of the competition altogether.
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Twitter Reportedly Was In Discussions To Drop A $4 Billion Bag On Clubhouse was originally published on hiphopwired.com