Square rejected Apple’s $3 billion takeover bid
Reports reveal that Square turned down an Apple offer to buy into it – the breakdown attributed to the 50 per cent valuation Apple made of the $6 billion value square carries on it. Square walked away from the negotiation at Apple’s $3 billion valuation, say a report on TechCrunch.
Piqued by Square’s rejection of its offer, Apple announced its competing mobile service – Apple Pay. Apple Pay will facilitate iPhone 6 and Apple Watch users for making payments when they order physical goods in retail shops; all with a single tap. It turns out that Apple will be using Stripe’s services for facilitating payments instead of Square’s.
It has also been revealed that Apple had showed Square a software register, booking services and a payment system for iPhone which Square’s executives felt would be at loggerheads with their own products and eventually outshine their own offerings.
Square in the meanwhile has brought $100 million in funding taking its valuation to $6 billion. There is also talk that it may eventually be heading for an IPO.
Square in recent months has been on acquisition spree. The most recent is a $90 million for Caviar, a company engaged in food delivery service. Though processing credit payment remains the core activity of the company, pressures on margins and intense competition is making it look around for greener pastures.