Press Here
MONDAYS @ 6:30 PM
CALIFORNIA NONSTOP

Report: Square In Sale Talks with Apple, Google

View Comments (
)
|
Email
|
Print

Square has been looking to sell itself to an attractive bidder and apparently has been in sales talks with both Apple and Google, according to a report.

Square has been losing profits and apparently its people are looking to sell rather than keep taking financial hits, according to the Wall Street Journal citing unnamed sources. The reports said that Square has been in negotiations with Google earlier this year, but previously had talked to both PayPal and Apple.

Following a $100 million loss for last year, Square has eaten into its cash and apparently can't sustain hemorrhaging cash because of its slim profit margin. Despite the unnamed sources, a Square spokesman denied having talks with Google. "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," he said to the WSJ.

PayPal also denied meeting with Square executives. The article seemed to leave out a comment from Google -- unless that's the source of unnamed people speaking to the WSJ.
 
Square, still a private company, looked into an initial public offering last year but talks ended. Perhaps it had to do with a partnership with Starbucks that amounted to billions but Square saw a loss of $20 million on its 2 percent transaction fee. While we aren't mathematicians, something doesn't sound quite right, does it? Apparently this is because Square has to pay processors and cover fraudulent purchases. This may be why Square recently launched new services such as Square Cash, Square Market and Square Stand.
 

Leave Comments