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macrumors bot
Original poster
Apr 12, 2001
63,195
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Earlier 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.

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

mikethebigo

macrumors 68020
May 25, 2009
2,277
1,105
Bad foresight I guess. If Apple plans to enter your niche market and offers you 3 billion dollars beforehand, take the deal!!
 

JeffyTheQuik

macrumors 68020
Aug 27, 2014
2,468
2,407
Charleston, SC and Everett, WA
I know that Square is mainly for small businesses, but imagine if Apple took the the small payment to the next level to small sales; the ease of paying at garage sales or Craigslist with an :apple:Pay to make purchases between individuals.

That would be awesome.
 

critter13

macrumors 6502
Aug 23, 2010
374
477
square can adapt

so can't square throw nfc capabilities in their reader? giving smaller merchants that extra acceptable form of payment?
 

flash84x

macrumors regular
Aug 5, 2011
189
132
Bad foresight I guess. If Apple plans to enter your niche market and offers you 3 billion dollars beforehand, take the deal!!

Meh, Square is doing great things for small businesses, not just payments anymore. They're going to be just fine.
 

ebouwman

Cancelled
Jan 5, 2007
640
17
Could Apple make it so that in iphone six could run merchant software so that it could accept apple payments? THAT would hurt square. Until then I think they full a niche that apple isn't really touching yet.
 

HobeSoundDarryl

macrumors G5
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.
 

Krizoitz

macrumors 68000
Apr 26, 2003
1,724
2,065
Tokyo, Japan
Who would turn down $3bn from :apple:? Makes no sense... but now we have a better system in :apple:Pay.

Because they believe based on other information that they have that they are worth way more? Not irrational at all.

As for Apple Pay being a better system, its two opposite ends of the stick. Square is all about allowing you to ACCEPT payments on your iPhone. Apple Pay is all about MAKING payments with your iPhone.
 

Dekema2

macrumors 6502a
Jul 27, 2012
856
437
WNY or Utica
Someone who's company just a few months later is valued at $6 billion? ;)


Oh didn't know that. This is what happens when you try to get the first word in.

----------

Because they believe based on other information that they have that they are worth way more? Not irrational at all.



As for Apple Pay being a better system, its two opposite ends of the stick. Square is all about allowing you to ACCEPT payments on your iPhone. Apple Pay is all about MAKING payments with your iPhone.


And yeah I forgot Square is a card reader. I'm out of it today.
 

samcraig

macrumors P6
Jun 22, 2009
16,779
41,982
USA
You know just because a company doesn't want to get in bed with Apple or sell to Apple mean that they are silly/foolish or will perish because of it.

Just because someone makes you an offer to buy your business doesn't mean you should take it.
 

nostresshere

macrumors 68030
Dec 30, 2010
2,708
308
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?
 

Windlasher

macrumors 6502
Jan 11, 2011
483
111
minneapolis
Someone who's company just a few months later is valued at $6 billion? ;)



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.

The question now is will it stay at 6 billion? If the iPhone 6 is selling as well as all the media and mobile companies are claiming, by end of year, 30 million people will be using an iPhone 6 with apple pay. I'll say it again. 30 million customers, plus the 500 million already enrolled in iTunes.
 

kugino

macrumors 65816
Jul 10, 2003
1,161
166
if you don't think you're getting a fair deal, then walk away. which is exactly what square did. they seem to be a pretty smart company and seem to be growing, so good on them. who knows, maybe a couple years from now we'll say they should have done the deal...but hey, good on them for pursuing their own path...
 

charlituna

macrumors G3
Jun 11, 2008
9,636
816
Los Angeles, CA
Who would turn down $3bn from :apple:? Makes no sense... but now we have a better system in :apple:Pay.

one could argue that they are two different systems. Square has something that Apple Pay doesn't. The ability for the rest of us to use it. I can't go to dinner with 4 friends and have them Apple Pay me their share so we can hand the waiter one card. But I can use Square. Most of the folks at my local farmers market use Square.
 

Aluminum213

macrumors 68040
Mar 16, 2012
3,597
4,707
Apple pay isn't allowed at the LARGEST RETAILER IN THE WORLD, Walmart


Square isn't worried about Apple
 

Michael Scrip

macrumors 604
Mar 4, 2011
7,922
12,470
NC
Because they believe based on other information that they have that they are worth way more? Not irrational at all.

Square is only "worth" what someone is willing to pay.

Hopefully someone else will come along and offer Square $4 billion or more.

As for Apple Pay being a better system, its two opposite ends of the stick. Square is all about allowing you to ACCEPT payments on your iPhone. Apple Pay is all about MAKING payments with your iPhone.

But the rumor is... Apple was looking to acquire Square. So there must have been some reason.

Maybe Apple wanted to integrate Square's technology into Apple Pay on the iPhone 6.

Then Apple could accept payments as well as make them.
 

coolfactor

macrumors 604
Jul 29, 2002
6,943
9,470
Vancouver, BC
Apple is awesome. Square is awesome. I'm a customer of both companies. I sure hope that Square stays firm and doesn't sell out to one of Apple's competitors. If Google purchased Square, for example, I'd stop using them immediately. I never want to see that day.
 

charlituna

macrumors G3
Jun 11, 2008
9,636
816
Los Angeles, CA
so can't square throw nfc capabilities in their reader? giving smaller merchants that extra acceptable form of payment?

Eventually they will have to. Well unless they are willing to eat any fraud that happens to hit them. Because they are in effect a merchant with the way their system is set up. And starting next year, the processor insurance companies will only cover fraud if it's from the new tech. Because they are saying this new tech is fraud proof, unlike the stripe system. Merchants that don't support 'chip and pin' will find themselves in a world of hurt very soon.
 
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