The Square website can be found at SquareUp.com. But the company’s inability to “square up” itself could mean selling to a rival, according to a post from The Wall Street Journal (h/t Business Insider).
The WSJ, citing sources close to the company, reports that Square lost $100 million in 2013 alone. The company has raised a total of $340 million in venture capital, but that stockpile of cash is quickly disappearing. So it looks like the company is on the hunt for a potential buyer to swoop in and save the day before the money runs out completely.
What kind of company would be interested, you ask? Business Insider’s Steven Bertoni claims that, according to his own sources, Square met with companies like Apple, Google and PayPal on its quest to strike a deal for an acquisition.
Apple is rumored to be developing a payments solution of its own. Google and PayPal are involved in payments already. It would be interesting to see how Square would fit with any of them.
As of now, though, Square is still an independent company.
Reports of bad news at Square HQ are quite a contrast to what we’ve been hearing about Square ever since it launched. The company is the brainchild of Twitter founder Jack Dorsey, who has built up quite a reputation as an innovator and, to some, a genius. Countless stories touted Square as the future of payments, and Dorsey as the next Steve Jobs.
But it appears that, in order to live up to those lofty expectations, the company will need more money and more time. Both can be had if Square sells itself to a larger company with a bigger pocketbook.
We’ll keep an eye on this story and update you if anything changes.
In the meantime, what do you think of this news, Square users? Will you continue to use Square if it sells to a larger company, like Google or PayPal? Drop us a line below with your thoughts.