Mobile payments “success” story, Square, in sale talks

Square Inc. mobile payments nfc technology
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As the struggles that are faced by the company continue to grow, discussions of acquisitions grow.

Square has been seen as a startup that has everything it takes to succeed, and while it has achieved international adoption and is among the most widely recognized brands in the mobile payments industry, it has been facing a rising number of struggles and there are now talks that acquisition could be in its future.

The problem is that its cash is continuing to shrink while its losses continue to broaden.

Reports are now popping up that have revealed that the Square Inc. mobile payments startup is now in discussions for a potential sale to one or several of a number of different rivals that have considerably deeper pockets. Earlier in 2014, Google was talking about an acquisition of the startup. This is not the first time that Google has shown interest in Square. Back in 2012, there had also been talks between the execs of Square and Google in order to talk about a potential Takeover.

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It isn’t yet clear whether or not these mobile payments takeover talks are those that are continuing now.

Square Inc. mobile payments (m-payments)Square has also previously found itself in similar talks with Apple, as well as with PayPal. That said, while there have been many industry giants that have been talking to the company about an acquisition in the past, those conversations never made their way to anything truly serious. That situation could be changing, considering the struggles that it has been facing over the last while.

For example, the losses that Square saw in 2013 were approximately $100 million. This was even greater than the losses it experienced the year before. The mobile payments company has passed its fifth birthday and last year, it ended up paying out about $110 more in cash than it was able to bring in. During the past three years, Square has managed to burn its way through over 50 percent of the funds that it has managed to raise in four equity financing rounds that it has held since 2009, which had drawn in $340 million

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