Microblogging giant Twitter Inc. has reportedly held talks in recent months to acquire Clubhouse, an audio-chat iPhone app launched last year in April, reported Bloomberg, citing people familiar with the matter. Few other media outlets also confirmed that discussions did take place.

However, now the talks with Twitter is no longer in continuation, said the report, and as it failed to proceed, Clubhouse, which lets users host their own online radio shows, began to explore whether it made sense to raise financing instead, at around similar valuation as it was reportedly would have been acquired by Twitter. 

Notably, Twitter has its own Clubhouse-like app called 'Spaces', a drop-in audio chatroom feature that it has been rolling out gradually to its user base over the past few months.

An another previous report of Bloomberg said that Clubhouse was seeking a fundraise at a valuation of around $4 billion, but the report detailing the potential acquisition talks indicate that the discussions with Twitter collapsed first, leading to a change in strategy to pursue securing additional capital in exchange for equity investment.

Clubhouse, as per media reports isn't making profit at all, thoough it tried monetizing it platform but that isn't working.


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