Apple Talked To Square About Being Acquired. It Didn’t Go Well

Apple recently approached Square about becoming part of the Apple family, but talks ended abruptly when Apple was only willing to pay $3 billion, which is half of the company’s current valuation, according to a report in TechCrunch.

“TechCrunch has heard from multiple sources that Square and Apple were recently in acquisition talks, but that Square walked away. Apple wanted the company to come aboard, according to one source, but the discussed price was a sticking point,” the story reported. “The tipster held that Apple wanted to buy Square for less than half of the $6 billion valuation it eventually would raise at (around $3 billion). Square, valued at the time at a firm 66 percent delta to that price point, declined to accept. Apple also showed Square a software register, restaurant and spa booking services and a payment system for iPhones said the same source. This did not sit well with Square execs, who felt like the products would compete with their own offerings.”

The story also reported that Square has raised another $100 million in capital.

“The company lost around $100 million in 2013, and it isn’t clear how much cash the firm had on hand before the new capital injection. Square was reported to have $155 million in cash at the end of 2013, a figure that was recorded, of course, before its debt event that took place earlier this year. The new share price values Square at $6 billion, up from its recent $5 billion valuation that was set during a secondary offering of its shares earlier this year,” TechCrunch reported. “Square’s valuation has grown as its payment volume has increased. As time has passed, Square’s valuation has fallen behind its payment processing rate: In June of 2011, Square was processing payments at a rate of around $1.46 billion per annum. Its valuation was $1.6 billion. Recently, Square was expected to process $30 billion in calendar 2014 while being valued at $5 billion.”