Twitter held potential acquisition talks with Clubhouse for with a deal value somewhere around $4 billion, Bloomberg reported. However, the discussions are no longer ongoing, and it’s unclear why they stalled, the report said citing sources.
Clubhouse lets users host their own online radio shows. Listeners can tune in to hear interviews or panel discussions and ask to participate in live chats.
Apparently, though the talks did not materialise into a deal, Clubhouse began exploring raising a new round of funding at a valuation of around $4 billion.
The app was launched last year and popularized the idea of hosting live audio conversations. Celebrities, tech CEOs, and regular folks have since tuned in and hosted rooms. More than 10 million people have reportedly downloaded the app, which is currently invite-only and iOS-only.
Incidentally, Twitter is also testing its own Clubhouse rival—Spaces, a drop-in audio chatroom feature that it has been rolling out gradually to its user base over the past few months. Apart from Spaces, Clubhouse also faces competition from a number of apps like Facebook, Discord, LinkedIn, and Slack, among others.