Report Says Google, Square in Secret Acquisition Talks

TEMPO.CO, Jakarta - The report that mobile payments firm Square has been in secret acquisition talks with big tech players like Google, Apple and eBay, if accurate, would not be entirely surprising, as cited in Media Post News.

The company best known for making the small plastic gizmo that allowed small business owners to accept card payments has been among the most highly touted startups of the last few years. In addition to attracting small business owners, it has also notched bigger deals with Starbucks, and more recently, Whole Foods.

Drawn in part by the pedigree of co-founder (and Twitter co-founder) Jack Dorsey, Square since 2009 has raised a whopping $340 million in funding. That has come not just from blue-chip venture firms like Kleiner Perkins Caufield & Byers and Sequoia Capital, but individuals including Yahoo CEO Marissa Mayer, Foursquare founder Dennis Crowley, and well-known tech angel investor Ron Conway.

With that kind of backing, investors are banking on one of two exits -- a multibillion acquisition or an initial public offering, Fox Business in February, citing sources knowledgeable with the company's finances, reported that Square was putting IPO plans on hold for this year. More recently it received a credit line of $200 million. 

There is no question that Square has been spending heavily to challenge the legacy POS (point-of-sale) systems with its own technology and processing deals. In addition to expanding its operations, the company has made several talent-and-technology startups itself since last year, and in February launched another TV ad campaign.

For the record, Square denied it's shopping itself to Google or any other companies, although it acknowledged in a statement that it "may be an attractive target for some companies." With a reported valuation of $5 billion, it would take a deep-pocketed tech or other company to snap up Square.

MEDIA POST | MW