Square reportedly declined $3B Apple acquisition offer [update: nope]
Following news that payments company Square recently gathered another $100 million in funding, a report on Friday claims the firm declined an offer to join Apple reportedly worth some $3 billion.
Citing sources familiar with the matter, TechCrunch reports Apple and Square were recently in acquisition talks, though negotiations failed, with the payments firm declining Cupertino's offer of "around $3 billion." According to the publication, Square was valued at 66 percent of the rumored $3 billion figure.
At the time, Apple reportedly showed off payments solutions that were in the same wheelhouse as Square's credit card-swiping system, which itself attaches to an iPhone's 3.5mm jack to communicate with a set of third-party apps.
While specifics regarding the secret devices were left unreported, it can be assumed that Apple was demoing Apple Pay, the recently-announced NFC-powered mobile payments system due out with the iPhone 6 and iPhone 6 Plus.
Today's rumor jibes with a report from January claiming both Apple and Google were mulling a takeover of Square, which would have considered an $8 billion valuation. At the time, it was said that Square CEO Jack Dorsey believes the company's aesthetic and values lined up with Apple more than Google.
Update: The well-connected Jim Dalrymple has poured cold water on rumors that Apple was interested in buying Square, responding to the reports with a patented "nope."
Citing sources familiar with the matter, TechCrunch reports Apple and Square were recently in acquisition talks, though negotiations failed, with the payments firm declining Cupertino's offer of "around $3 billion." According to the publication, Square was valued at 66 percent of the rumored $3 billion figure.
At the time, Apple reportedly showed off payments solutions that were in the same wheelhouse as Square's credit card-swiping system, which itself attaches to an iPhone's 3.5mm jack to communicate with a set of third-party apps.
While specifics regarding the secret devices were left unreported, it can be assumed that Apple was demoing Apple Pay, the recently-announced NFC-powered mobile payments system due out with the iPhone 6 and iPhone 6 Plus.
Today's rumor jibes with a report from January claiming both Apple and Google were mulling a takeover of Square, which would have considered an $8 billion valuation. At the time, it was said that Square CEO Jack Dorsey believes the company's aesthetic and values lined up with Apple more than Google.
Update: The well-connected Jim Dalrymple has poured cold water on rumors that Apple was interested in buying Square, responding to the reports with a patented "nope."
Comments
A whole $100?
These astronomical figures blow me away.
Decline $3 billion now, lose it all in 3 years when Apple has supplanted you.
Great going, guys.
It's actually a shame. I've always been impressed by Square. But I think it'll take an acquisition at this point for them to stay in the race.
Wow, you'd really have to love your company to turn down that kind of money.
Wow, you'd really have to love your company to turn down that kind of money.
Not love; hubris.
Apple can build better than Square for 3 Billion but it will take time.
Square was apparently worth $3.25B in 2012.
http://finance.yahoo.com/news/square-earned-3-billion-valuation-120000423.html
They may have the same fate as Nuance.
Time will tell.
Its their company. Square is a good innovation and nice improvement. Many innovators make these mistakes. They have their own plans so they rejected 3B dollars. What is wrong?
Yikes... They'd better hope Google's interested. Google is undoubtedly scrambling to slap together a solution that mirrors Apple's. When that happens, we'll eventually be looking at 2 little buttons at the bottom of every digital shopping cart that will say "apple pay" and "android pay". When that happens... Square who?
It's actually a shame. I've always been impressed by Square. But I think it'll take an acquisition at this point for them to stay in the race.
#1) Square is sort of doing a different thing. They're accepting payments and Apple is making payments. I think there's room for both systems, especially if Square makes a really nice looking NFC register that becomes popular.
#2) Google is likely thankful for the news. Google put all of their weight behind NFC (remember, bump phones to share a playlist?) and it was almost a dead technology because Apple wouldn't adopt it. But now that Apple is in the game, it will almost force retailers to support NFC, which Google will be happy about since it already has a NFC payment system that will suddenly be usable in more places.
Nope. This report is BS.
I would hate to see that.
Apple is better off buying Verifone. Located close to Cupertino and NYSE: PAY.
No, you know what, though? I just had a thought. Compare this to Nest. What’s the difference? Intention, I guess. Nest whored themselves out to Google for money and that’s bad, because of Google’s behavior. But Square not accepting an Apple buy is bad.
#1) Square is sort of doing a different thing. They're accepting payments and Apple is making payments. I think there's room for both systems, especially if Square makes a really nice looking NFC register that becomes popular.
The next iPads will have NFC, and so be perfect for use as Apple Pay registers. The new iPhones could also accept payments, with the right software.