Square Could be Worth $4.5B
NEW YORK (TheStreet) -- With Twitter's
San Francisco-based Square, which charges a flat 2.75% fee on credit card payments, could be worth as much as $4.5 billion, based on recent private market transactions, a source close to the situation said. One large seller has been offering $40 million worth of stock, at $125 per share, as interest in the company continues to climb, lifted by the recent run-up in technology stocks.
Square's last financing round, which Starbucks
Other Square investors include Rizvi Traverse Management, Kleiner Perkins Caufield & Byers.
Square could not be reached for comment for this story.
Square has been expanding its offerings in recent months. The company recently launched Square Cash, a threat to eBay's
Yesterday, The Wall Street Journal reported that the company has been speaking with investment banks including Goldman Sachs
As of May, Square was processing $15 billion in transactions on an annualized basis. The Journal reported that number has since been upped to around $20 billion. Based on a 2.75% flat fee, that would put Square's annual revenues at around $550 million. However, a good chunk of that, perhaps as much as 80%, goes to Visa
Visa invested an undisclosed sum in Square in 2011. There's been speculation that the payments giant could ultimately wind up buying Square outright, despite Square still not being profitable, according to public statements made by Dorsey.
--Written by Chris Ciaccia in New York
>Contact by Email.