Apple, Square Acquisition Talks Went South Over $3B Offer [Update: Nope]

393788_largerEarlier this year, Apple and Square were rumored to be in talks over a possible acquisition, but no deal materialized. According to a new report from TechCrunch, talks between the two companies failed over purchase price.

Apple is said to have wanted to purchase Square for approximately $3 billion, an offer that Square felt was too low given its valuation at the time.

Separately, TechCrunch has heard that Square and Apple were in acquisition talks, but that Square walked away. Apple wanted the company to come aboard, but the discussed price was a sticking point: Apple wanted to buy Square for around $3 billion, one source said. Square, valued at the time at a firm 66 percent delta to that price point, declined to accept. Apple also showed Square a raft of hardware that would compete with Square's point-of-sale tools, said the same source.

Earlier rumors suggested that the disconnect between Square's robust offline payment solution and Apple's simpler plan to enable payments via iPhone were another reason why talks eventually came to an end. Square has recently raised $100 million in capital, putting its valuation at $6 billion.

Apple on Tuesday revealed its long-rumored mobile payment solution, Apple Pay. Apple Pay is designed to allow iPhone users to make NFC payments using credit cards stored in Passbook, which are then authorized with the Touch ID fingerprint sensor. Apple has reached deals with credit card companies, credit issuers, and retailers, and has plans to launch Apple Pay in October.

According to Apple, the program will work with over 220,000 U.S. retail stores, including Walgreens, Duane Reade, Macy's, Nike, Bloomingdales, Staples, Subway, McDonalds, and more.

Update 7:00 PM PT: Jim Dalrymple has given one of his famous "Nope" responses to the Square/Apple acquisition rumors, suggesting that the two companies were not in talks about a possible acquisition.

Top Rated Comments

(View all)
Avatar
80 months ago
Bad foresight I guess. If Apple plans to enter your niche market and offers you 3 billion dollars beforehand, take the deal!!
Score: 23 Votes (Like | Disagree)
Avatar
80 months ago
Who would turn down $3bn from :apple:? Makes no sense... but now we have a better system in :apple:Pay.
Score: 10 Votes (Like | Disagree)
Avatar
80 months ago
Idiots.


Apple will crush them and they will be worth 10% of that amount.

When Yahoo had a chance to sell, they passed. Stupid.


Stupid
Stupid
Stupid

Where can I invest my money in STUPID?
Score: 8 Votes (Like | Disagree)
Avatar
80 months ago

Apple pay isn't allowed at the LARGEST RETAILER IN THE WORLD, Walmart


Square isn't worried about Apple


Frankly, the largest retailer in the world can take a long walk off of a short plank.
Score: 7 Votes (Like | Disagree)
Avatar
80 months ago
I'm glad the Square deal did not go through. The Apple Pay system sounds like a winner. A much better system for consumers once it is embraced by many.

And even the CEOs of credit card companies say that Apple Pay is a good idea. They are actually glad that Apple is working with them rather than competing against them.

Once Apple Pay hits critical mass (will take a couple of years), Square will realize that it lost the opportunity of lifetime.
Score: 6 Votes (Like | Disagree)
Avatar
80 months ago

Who would turn down $3bn from :apple:? Makes no sense

Someone who's company just a few months later is valued at $6 billion? ;)

but now we have a better system in :apple:Pay.

With Square plus a smart phone, anyone could take a credit card payment for anything- no special hardware to purchase. I've bought hot dogs at sporting events through Square. With Apple Pay, the retailer is probably going to need to be BIGGER so they can buy the hardware that supports NFC. Square will give you the hardware (dongle) so you could take credit cards at a garage sale, a fund raiser, or anywhere else.
Score: 6 Votes (Like | Disagree)

Top Stories

iPhone 12 Pro in Graphite and iPhone 12 in Blue Shown Off in Unboxing Videos

Monday October 19, 2020 8:20 am PDT by
While the iPhone 12 Pro does not launch until Friday, we now have an early unboxing video of the device courtesy of Twitter account DuanRui, providing a closer look at the shiny new flat-edge design and sleek Graphite color option. Ben Geskin re-uploaded the unboxing video to YouTube, which we've embedded below: Geskin has also uploaded an unboxing video of the iPhone 12 in Blue: ...

Kuo: iPhone 12 Pro Demand Higher Than Expected

Sunday October 18, 2020 10:39 pm PDT by
TF International Securities analyst Ming-Chi Kuo released a research note this morning detailing what he's seen with the volume of iPhone 12 and iPhone 12 Pro pre-orders in the first weekend of sales. Kuo had previously indicated that Apple's estimated shipment allocations for the new iPhone models placed the iPhone 12 at the top with 40-45% of inventory allocation (up from 15-20%). However, ...

New Photos Offer Better Look at iPhone 12 Color Options

Tuesday October 20, 2020 2:34 am PDT by
As we wait for the iPhone 12 review embargo to lift later today, more pictures are circulating of the devices in real-world lighting conditions, providing a better look at the different colors available. Leaker DuanRui has shared images on Twitter of the iPhone 12 in white, black, blue, green, and (PRODUCT)RED. The black and white colors are similar to the iPhone 11 colors, but the other...

Hands-On With Apple's MagSafe Charger for iPhone 12

Monday October 19, 2020 11:54 am PDT by
Alongside the new iPhone 12 models, Apple introduced a MagSafe charger that attaches to the back of the iPhones using magnets embedded both in the charger and in the iPhone. It allows for speedier charging and paves the way for a portless iPhone in the future. MagSafe chargers are shipping out and are in some Apple retail locations now, and we picked one up to check it out. Subscribe to the ...

Some Apple Watch SE Owners Experiencing Issues With Overheating [Updated]

Monday October 19, 2020 11:38 am PDT by
There may be an issue with the new Apple Watch SE, which some users have found is overheating after a few hours of usage. Several Apple Watch SE owners in South Korea have run into problems, as noted in a Reddit post chronicling the complaints. There have been six reports from Apple Watch SE owners in South Korea who have had their Apple Watches get hot and malfunction, with a yellow spot...

Apple's New MagSafe Charger and Cases Begin Arriving to Customers

Saturday October 17, 2020 10:10 am PDT by
Apple's new MagSafe charger and cases have begun arriving to some customers earlier than expected, and images of the accessories have started to surface on Twitter. The photos provide a first look at the products in real-world use. As of writing, some MagSafe cases are also available for pickup at select Apple Stores in countries like the United States, Canada, and Germany. Filip...

Apple Releases iPadOS and iOS 14.1 With Multiple Bug Fixes Ahead of iPhone 12 Launch

Tuesday October 20, 2020 10:06 am PDT by
Apple today released iOS and iPadOS 14.1, the first major updates to the iOS and iPadOS 14 operating system updates that were released in September. iOS and iPadOS 14.1 come a week after Apple released the golden master versions of the updates to developers. The iOS 14.1 update can be downloaded for free and it is available on all eligible devices over-the-air in the Settings app. To access...

Watch: iPhone 12 and iPhone 12 Pro Unboxing Videos and First Impressions

Tuesday October 20, 2020 6:05 am PDT by
Apple's embargo has lifted for iPhone 12 and iPhone 12 Pro reviews. In addition to our detailed review roundups for each device, we've rounded up over a dozen unboxing videos and first impressions below. iPhone 12 in Blue on left and iPhone 12 Pro in Pacific Blue on right via Engadget Key new features of the iPhone 12 and iPhone 12 Pro include a flat-edge design, 5G support, a much faster A14 ...

Apple Plans to Enable 5G in Dual SIM Mode With Software Update Later This Year

Monday October 19, 2020 9:20 am PDT by
iPhone XS models and newer feature both a physical SIM slot and a digital eSIM, allowing for a feature known as dual SIM, dual standby. This means you can have two lines of service on one iPhone, which is useful for purchasing data-only plans while traveling abroad or having personal and business lines on a single iPhone. 5G will not be available in Dual SIM mode on the iPhone 12 and iPhone...

Brazilian Certifications Suggest iPhone 12 Mini Features 2,227mAh Battery and iPhone 12 Has 2,815mAh Battery

Friday October 16, 2020 1:08 pm PDT by
Apple's iPhone mini has the shortest battery life out of all the iPhones in the iPhone 12 lineup due to its small size, but Apple has not provided public information about the battery's capacity. A regulatory filing from Brazil, however, suggests the iPhone 12 mini has a battery capacity of 2,227mAh. The same regulatory information says the iPhone 12 features a 2,815mAh battery, which is...