Square reportedly declined $3B Apple acquisition offer [update: nope]

Posted:
in General Discussion edited September 2014
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.

Square POS


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."
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Comments

  • Reply 1 of 49
    gtrgtr Posts: 3,231member
    "Following news that payments company Square recently gathered another $100 in funding..."

    A whole $100?

    These astronomical figures blow me away.
  • Reply 2 of 49

    Decline $3 billion now, lose it all in 3 years when Apple has supplanted you.

     

    Great going, guys.

  • Reply 3 of 49
    It looks like Apple will do ok without them. Square do ok without Apple (but with Apple in their space)? Probably less so.
  • Reply 4 of 49
    Decline $3 billion now, lose it all in 3 years when Apple has supplanted you.

    Great going, guys.
    Truly a bonehead manuver.
  • Reply 5 of 49
    Morons. Now expect to go bankrupt.
  • Reply 6 of 49
    tbelltbell Posts: 3,146member
    The deal probably had to do with Square's point of interest data.
  • Reply 7 of 49
    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.
  • Reply 8 of 49
    asciiascii Posts: 5,941member

    Wow, you'd really have to love your company to turn down that kind of money.

  • Reply 9 of 49
    Quote:

    Originally Posted by ascii View Post

     

    Wow, you'd really have to love your company to turn down that kind of money.


     

    Not love; hubris.

  • Reply 10 of 49

    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.

  • Reply 11 of 49

    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?

  • Reply 12 of 49
    Quote:

    Originally Posted by winchester View Post



    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.

  • Reply 13 of 49
    I guess we all have our tolerance levels. I have a company that I wouldn't sell for $100 million. But for $3B, Hell Yeah!!!
  • Reply 14 of 49
    It's amazing how arrogant some companies or their leadership are. Apple Pay is going to be huge. I can see it eclipsing PayPal and most of not all legacy payment options. I'm sure Apple will eventually have it where you can exchange funds securely much like PayPal. 100 mil or 3 Bil hmmm... Good going, I'll give Square 2 years or less before they are hurting and closing their doors or they get acquired for pennies on the dollar if at all.
  • Reply 15 of 49
    slurpyslurpy Posts: 5,152member

    Nope. This report is BS. 

  • Reply 16 of 49
    calicali Posts: 3,495member
    winchester wrote: »
    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".

    I would hate to see that.

    Apple is better off buying Verifone. Located close to Cupertino and NYSE: PAY. ;)
  • Reply 17 of 49

  • Reply 18 of 49
    Originally Posted by ascii View Post

    Now, you'd really have to love your company to turn down that kind of money.

     

    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.

  • Reply 19 of 49
    Love it that Jim the beard just one word "nope".
  • Reply 20 of 49
    Quote:

    Originally Posted by dstarsboy View Post

     

    #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.

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