Following the huge success of Clubhouse, companies like Twitter and Facebook have begun work on their own live audio chat platforms. Interestingly, it seems that Twitter has already considered acquiring Clubhouse for a whopping $4 billion — although the plan has not turned out as expected.
As reported by Bloomberg today, Clubhouse has been in talks to raise funds from investors. However, one of the companies that has negotiated with Clubhouse is none other than Twitter. The report says that both companies have had talks “in recent months” according to their own sources.
Twitter Inc. held talks in recent months to acquire Clubhouse, the buzzy audio-based social network, according to people familiar with the matter. The companies discussed a potential valuation of roughly $4 billion for Clubhouse, the people said, asking not to be identified because the matter is private.
Although Twitter considered buying Clubhouse, the company has already given up on that idea for some unknown reason. It’s not hard to imagine that the social network realized that its own Clubhouse alternative called Twitter Spaces could be even more popular without the need to buy another app.
Clubhouse was introduced in 2020, but it only became popular in early 2021 after several celebrities like Mark Zuckerberg and Elon Musk joined the platform. For those unfamiliar with the app, Clubhouse lets users chat with others via live audio in different rooms. The app, which remains exclusive for iPhone, reached more than 8 million downloads on the App Store in February this year.
At the same time, Facebook, LinkedIn, and even Spotify are working on similar features for their apps. Bloomberg says Clubhouse is still looking for investments, but the future of the social network is uncertain, considering the growing competition.