Square reportedly in talks with Google, Apple for possible sale; running low on cash

The mobile payment company has consumed more than half of the $340 million it raised over the last four years through equity fundraising.
By Ananth Baliga  |  April 21, 2014 at 10:49 AM
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SAN FRANCISCO, April 21 (UPI) -- Mobile payment company Square might be looking for a buyer after losing $100 million in 2013 and with cash flow running low, according to reports.

Square could be looking for a deep-pocketed buyer and has reportedly had meetings with a couple of major tech companies. Google discussed the possibility of acquiring Square earlier this year, which followed a meeting by the two companies in 2012, according to two people familiar with the matter. It is uncertain if talks are continuing currently.

Other companies like Apple and Ebay's PayPal have also been in talks with Square, but according to sources those meetings never developed into serious talks.

A spokesman for Square said, “We are not, nor have we ever been in acquisition talks with Google.”

“We did not have acquisition talks with Square,” said a spokesperson for PayPal.

Square started out providing hardware to make payments using a smartphone, but has diversified into a broader electronic commerce company, providing a digital cash register service and the ability for users to send cash to friends and family. Square processes billions of dollars in transactions each year.

Despite its success, Square had a $100 million loss last year, which was more than 2012. In the past three years the company has reportedly eaten through more than half of the $340 million it raised during four rounds of equity financing since 2009.

[MarketWatch] [CNET]

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