Twitter Reportedly Discussed Buying Clubhouse for $4Bn But the Deal Failed

Micro-blogging platform Twitter reportedly tried to acquire the invite-only audio chat app Clubhouse for nearly $4 billion but the talks failed, according to a report from Bloomberg. TechCrunch has also “confirmed the discussions took place from a source familiar with the conversations,” the talks occurred over the past several months but they’re no longer taking place.

These conversations have reportedly stalled, and it’s unclear why. It’s also unclear whether Twitter or Clubhouse approached the other first, which could speak to how either platform is feeling about the competition in the social audio space. Bloomberg also reported yesterday that Clubhouse is now looking to raise money at a $4 billion valuation; it’s possible that number came out of these Twitter discussions, or that Clubhouse is shopping that figure around.

Clubhouse 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.

Alarmed at the growing popularity of Clubhouse, several tech giants are working on a rival app and Twitter has started testing ‘Spaces’ on Android. The Twitter Spaces tool is currently available on iOS Beta with a host of iOS-exclusive features such as voice tweets, which is yet to arrive on Android devices.

In the feature, users can create a ‘Space’ that their followers can join to participate in a conversation. Anyone on Twitter can listen in on the conversation, though only the host can control who gets to speak. Clubhouse is currently available on Apple App Store and has been downloaded more than 8 million times. The company is working on an Android version. Facebook is also working on building its own social audio app like Clubhouse.

Even Microsoft-owned LinkedIn is working on a similar app for over 740 million members in more than 200 countries. The leading professional networking platform confirmed the move, saying that it is working on an audio networking feature. “We’re doing some early tests to create a unique audio experience connected to your professional identity,” LinkedIn had said in a statement.

Whatever went down, the timing of this revelation seems likely to prime the pump for Clubhouse’s conversation with potential investors at its target valuation for the round it’s looking to raise. Regardless, it’s exciting to have this kind of activity, buzz, and attention paid to a consumer software play after many years of what one could argue has been a relatively lackluster period for the category.