Square denies acquisition talks

Posted Apr 21, 2014

There are several reports that Square, the popular mobile payments startup, has been talking with several rivals about selling itself. These reports claim that Square is losing millions of dollars every quarter. 

Square was founded in 2009 by Jack Dorsey, one of the creators of Twitter. Square has been rumored to be going public eventually, but there could be a company that comes along and gives them an offer that they cannot refuse.

According to The Wall Street Journal, Square insiders sold shares earlier this year on the secondary market with a valuation of around $5.2 billion. The Journal reports that Square recorded a loss of around $100 million in 2013 and consumed over half of its $340 million it raised from at least four rounds of equity financing since 2009.

Square builds credit card readers that are placed into smartphone and tablet slots. Square denied that it had acquisition talks with Google. Square also held discussions with banks like Goldman Sachs and Morgan Stanley in November about an IPO in 2014. The IPO has been postponed “indefinitely” though.

“We are not, nor have we ever been in acquisition talks with Google, and while we appreciate that Square may be an attractive target for some companies, we have never seriously considered selling to anyone or been in any talks to do so,” said a Square representative in an e-mail to Mashable.