Mobile-Payments Startup Square Discusses Possible Sale As Losses Increase.
Square is a mobile payment startup that’s been around for a while and has created a much simpler and easier way for people to get paid. Although, it does seems as things haven’t been going so well as of late for the company and in the face of these recent losses and cash flow issues. Sources that are close to the company and its operation have claimed that Square may sell itself to one of its rivals. Three people who claim to be in the know how with whats currently going on, commented that Google considered purchasing Square earlier in the year.
These sources have not commented further on whether these talks are still ongoing. Talks earlier during this year followed meeting during 2012 between Google and Square where a potential takeover was in discussion, according to the sources. Sources went on to claim that Square has been in recent talks with Apple and eBay as well. Talks with those two firms are said to have developed into nothing really serious.
Square has been confronted with a mass amount of loses to the total amount of around $100 million during 2013. Sources claimed that over the past three years, Square has had to use up more than half the $340 million that it managed to raise during its four rounds of equity financing it gained since 2009.
Despite these claims by these anonymous sources, Square has officially stated that it was not in any recent talks with Google. A spokesperson for Square stated that it wasn’t in talks and had never been in talks with Google, PayPal parroted those statements with a rep noting that it hadn’t held any talks with Square. Revenue for Square during the previous year was reported to be around $550 million on $20 billion in transaction utilizing its credit card reader.