According to a recent report from Bloomberg News, Twitter had recently held talks about acquiring a company called Clubhouse for the sum of $4 billion.
Clubhouse is an audio-based social media network which many Silicon Valley tech executives, in fact, happen to use to communicate with one another. As yet, Clubhouse’s services are something of a niche product, but if this report is to be believed, the top brass at Twitter appears to believe that it is on the verge of truly exploding into general public awareness.
Is Twitter Looking to Consolidate Control?
Bloomberg News received information about these talks from a group of inside sources who wished to remain anonymous. However, these sources also revealed that the talks between Twitter and Clubhouse are no longer ongoing.
It is unclear why negotiations have broken down. Representatives from Twitter also refused all attempts made by Bloomberg News to solicit comments.
To describe it simply, Clubhouse is an audio chat app. It allows users to host audio chat rooms, which allow other users to either jump in or leave at their pleasure and either listen in on or contribute to discussions. It’s essentially the audio version of an app like Skype or Zoom. As mentioned, Mark Zuckerberg, Jack Dorsey, and other tech CEO already regularly use Clubhouse to host their special conclaves.
Now that talks with Twitter have ended, it appears that Clubhouse is making the rounds in venture capital circles. The tech start-up is raising money from investors with the goal of raising the $4 billion, just as was discussed in negotiations with Twitter.
It is not clear whether Clubhouse will ultimately be able to raise that much money, but the company — despite only being around for one year — has already attracted enough attention from those in the know to encourage other tech and social media companies, like Facebook, Slack, and LinkedIn, to add Clubhouse-like features to their own technologies.
Indeed, Clubhouse has already spawned a competitor, a company called Spaces, which only emerged in late 2020.
Additionally, Microsoft is apparently looking to purchase Discord, a gaming-focused, and server-based chat app. Figures as high as $10 billion have been reported.
As all of this shows, the tech titans are busy struggling to retain their positions of market dominance in their fields. They are seeking to buy out as many new start-ups as possible and retain their quasi-monopolistic positions.
Whether they will succeed remains to be seen.