Monday, October 20, 2014

Report: Square weighs potential sale

Mobile-payments service Square on Monday denied a report it is talking with several tech giants about a possible acquisition.

The San Francisco-based company, led by Twitter co-founder Jack Dorsey, took issue with a story in the Wall Street Journal that said Square discussed a potential deal with Google, and engaged in informal talks with Apple and eBay's PayPal division about an acquisition. The Journal cited "people familiar with the matter."

Square spokesman Aaron Zamost said the company has not talked with Google, and it has "never seriously considered" selling to another company. In a separate statement to the Journal, PayPal dismissed claims it held discussions with Square.

"We have never seriously considered selling to anyone or been in any talks to do so," Zamost said in a statement.

The report says Square lost $100 million last year, more than in 2012.

Should Square sell and forsake its long-rumored IPO plans, it will haven fallen short of the promise affixed to it and the mobile-payments industry.

Last fall, the Journal reported Square had been in talks with banks to launch an initial public offering this year.

Research firm Gartner estimates more than 450 million mobile-payment users will account for $721 billion in transactions worldwide by 2017.

The start-up, meanwhile, has raised about $340 million from at least four rounds of equity financing since 2009, but has burned through half of it, the Journal reported, citing anonymous sources.

Along the way, Square has partnered with several major retailers, including Starbucks and Whole Foods Markets.

Since its device and app became available in 2010, Square has gained millions of customers. It has added services the past year that could eventually be more profitable — such as Square Cash, which helps people send money to friends via e-mail, and Square Market, a digital marketplace for small businesses.

Square Stand lets stores track customer data.

Follow Brett Molina on T! witter: @bam923.

No comments :

Post a Comment