Square Is Losing Millions And Wants To Sell
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.