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Square Is Losing Millions And Wants To Sell

Square Is Losing Millions And Wants To Sell

by Brad MerrillApril 21, 2014

Square has been in talks with several competitors for a possible sale as the startup looks to escape growing losses and dwindling cash, the Wall Street Journal reports, citing people familiar with the matter.

The company recorded a loss of about $100 million in 2013, the Journal said, adding that the startup has burnt through more than half of the $340 million it raised from at least four rounds of equity financing since 2009.

Square spoke to Google about a possible sale earlier this year, according to the WSJ. It’s not clear whether the talks are continuing.

Square also had informal discussions about a deal with Apple and eBay’s PayPal in the past, but those conversations never developed into serious talks, the Journal said.

A spokesperson for Square told the Journal that the company never had acquisition talks with Google. The report also quoted a PayPal spokesperson as saying the company did not have acquisition talks with Square.

Square held discussions with banks such as Goldman Sachs and Morgan Stanley in November about a potential initial public offering in 2014. However, the company’s planned IPO has been postponed “indefinitely,” according to media reports last month.

About The Author
Brad Merrill
Brad Merrill is the founder and former editor of VentureBreak.