Apple reportedly considered acquiring Square before launching Apple Pay
Before introducing its new Apple Pay mobile payment platform, Apple reportedly considered acquiring the mobile payment company Square.
In an article predicated on Square’s new $100 million funding, TechCrunch reports that the two companies were indeed engaged in acquisition talks. But the talks were eventually terminated on account of disagreement between the parties over pricing:
Apple wanted the company to come aboard, according to one source, but the discussed price was a sticking point: The tipster held that Apple wanted to buy Square for less than half of the $6 billion valuation it eventually would raise at (around $3 billion). Square, valued at the time at a firm 66 percent delta to that price point, declined to accept.
Square also reportedly walked away from the talks after Apple showed it some of the tech company’s competing services, including a software register, a restaurant and spa booking system, and a payment platform.
The last mentioned product, of course, refers to Apple Pay, which was recently unveiled by Apple alongside the iPhone 6, the iPhone 6 Plus, and the Apple Watch.
Square’s current services include the point-of-sale software Square Register, the person-to-person money transfer service Square Cash, and the pickup app Square Order.
Earlier this year, Square was reported to be bleeding cash and looking to sell. Back then, Square cofounder and CEO Jack Dorsey said that he would like to sell his company to Apple.