Technology

Twitter reportedly tried to buy Clubhouse for $ 4 billion

Twitter had been in discussions about the Clubhouse buyout for several months before the negotiations broke down, Bloomberg reported on April 7. Jack Dorsey’s company would have been ready to spend $ 4 billion to afford the start-up. Bloomberg says Clubhouse is now looking to raise funds with a target of an equivalent valuation of $ 4 billion. No information regarding these discussions has been officially confirmed.

CLUBHOUSE: A GROWING PLATFORM

The Clubhouse application, launched just a year ago, allows its users to participate in or create online audio conferences on the principle of “lounges” that anyone can join whenever they want. Registration is by invitation: each registrant can invite two other people to join the application, which slows its democratization among the general public.

Clubhouse became particularly popular at the start of 2021 after big names like Mark Zuckerberg and Elon Musk organized shows, the latter having even invited Vladimir Poutin to discuss with him on the application. So much so that Clubhouse recorded 8 million downloads on the App Store in February 2021 and nearly 13 million at the end of March 2021.

In full expansion, the company frequently raises funds to stay afloat and develop its functionalities. Last week, it launched a tip system that gave users the ability to fund creators without any commission being charged. In doing so, she encroaches on Patreon’s land.

TWITTER SPACES, THE COMPETITOR LAUNCHED BY… TWITTER

Along with the aforementioned discussions, Twitter launched a competing feature of Clubhouse, dubbed Twitter Spaces, at the end of 2020. It has been available since early March on iOS and Android. However, while everyone can attend the conferences, only a few users can launch lounges and that is why Twitter announced the opening of hosting capacities to all users by April. It also plans to launch a web version soon.

Following the launch of its audio chat application, Twitter acquired the Breaker application, a service specializing in podcasts. Since the takeover, the application has closed and all of its employees are dedicated to the development of Spaces. Proof that this audio service is a priority for the blue bird social network.

THE COMPETITION IS TOUGH

Slack, Facebook but also LinkedIn have said they are working on similar options for their platforms. Competition is therefore fierce for Clubhouse given the position of these companies, which in theory only have to add an option to their applications to oust this newcomer. The start-up will she succeed, or will it come to the end of the blow to regret not having seized the offer of Twitter? Response by the end of the year.

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