Rumor: Twitter wanted to buy Clubhouse for $4 billion

Twitter reportedly wanted to buy live audio chat app Clubhouse for $4 billion. That reports financial news agency Bloomberg. The deal fell through for unknown reasons and the takeover talks have since stopped.

The talks took place in recent months, Bloomberg said citing anonymous sources. It is unknown why they broke down. Clubhouse is about a year old and supposedly had about seven million users a few months ago. Twitter had been willing to pay about $4 billion to take ownership of the app.

Twitter already has its own version of Clubhouse called Spaces. The social network has been testing the feature since December and recently opened it up to more people, and Twitter is also working on a desktop version of it.

Meanwhile, Clubhouse is trying to raise investments with a valuation of around four billion dollars. It is unknown whether this will work. Initially, the platform grew rapidly. Meanwhile, there are several competitors. In addition to Twitter Spaces, Discord has a similar feature and Facebook has started its test of Hotline.