Twitter allegedly discussed plans to acquire the social audio app, Clubhouse for a fee of around $4 million, reports have claimed.
This is coming after the bird app had already built its own audio feature, Spaces to serve as a competition.
However, reports are also saying that the discussions are no longer ongoing as they stalled; it is unclear the reason for this though.
Questions like who took the first approach for the acquisition are some of the controversies ongoing.
There has been no statement from any of the parties involved to answer the questions.
However, there had been a report that Clubhouse was allegedly looking to raise funds at about $4 million round valuation from investors.
At the period the report came in, there were uncertainties on who the investors were and how much the company really wants to raise.
Logically, it might be that Clubhouse made the first approach, as the sum tallies with its prospective round funding.
However, it’s just speculation as there is no official statement from any of the parties.
The audio app’s popularity has grown recently
Clubhouse has been in existence since April 2020; it wasn’t so popular as when it came.
However, later on, it started to attract world influencers, tech gurus, celebrities, CEO and normal people.
They began to tune in on its platform and hold discussions on several subjects.
Interestingly, the idea of the app had triggered many other platforms to build something similar; Twitter’s Spaces, Facebook’s Room and LinkedIn, Microsoft.Inc, Spotify, Discord and Slacks have said they are planning on building a similar platform in their system.
This has created many competitions for the social platform as these other platforms already have an in-built number of users on their platform.
Also, they had a fully equipped website and apps, that are available to Android, iOS and desktop users.
Despite this, the audio app has been doing well with over 10 million users; it is an invite-only audio app for iOS users, which makes it limited compared to others.
Still, Clubhouse has been trying to innovate its platform.
It is planning on building the Android version of its platform for Android users.
Also, to increase the value the app gives to a creator, it plans on creating a tipping system.
Whereby, users can tip a creator they like on the platform.
Clubhouse said it would not be getting any revenue from that.
What could happen if the acquisition is verified?
If the acquisition is said to be true by both parties, it would mean Twitter would emerge as a force in the ongoing competition of audio platforms.
Also, it would mean one competition less for Twitter.
Twitter would be able to get a user base from Clubhouse to its platform.