1.Proprietary and Confidential April 11, 2014 With a famous CEO
in Jack Dorsey, $200 million in equity financing and a newly
secured $20 million line of credit Square has the Silicon Valley
buzzing with one question what are they going to do next? Sell out
to Google? Go for the IPO? Raise more money? The options seems
endless and PYMNTS wants to help you understand them all.
PYMNTS.com Tour of the many industry players courting Square
SquaresManySuitors: A Silicon Valley Love Story
2. Proprietary and Confidential Google: The Rich Guy What to
Love 1.Google reportedly is considering an $8 billion dollar offer,
far north of the Square $5 billion valuation 2.Helps Google in its
question to more efficiently gather customer informiation and
target better adds. 3.Could offer valuable support for the
struggling Google mWallet. 2 | Somewhat Less Appealing 1.Dorsey and
Google estranged after Googles attempt to purchase Twitter.
2.Google rumors are old hat. 3.Jack does not want to sell to
Google, according to one insider quoted anonymously by Recode. 3.
Proprietary and Confidential Apple: The Artist Less Appealing
1.Apple is widely considered an mWallet wild card. 2.Apples Square
acquisition rumors have been rampant for years, but nothing has
come of it. 3.Apple is more into developing services for its mobile
devices than interested in offline solutions like Square 4.Apple
has reportedly soured on the idea of acquiring Square What to Love
1.CEO Dorsey has commented that Squares design aesthetic is similar
to Apples and indicated he thinks they are a better match than
Google. 2.Squares hardware chief Jesse Dorogusker worked at Apple
for more than eight years. 3.Apple has sold Square products in its
Apple Store Locations. 4.Give Apple a necessary jump forward as it
enters the mWallet race late. 3 | 4. Proprietary and Confidential
Starbucks: The Run-Away Suitor Less Appealing 1.Howard Schultz left
the Square board of directors after only I year. 2.Starbucks mobile
app is a competitor for the Square mobile wallet because it allows
consumers to pay with it. 3.Starbucks did not adopt Square POS
technology and has used it only as a lower- cost processing
service. What To Love 1.Inked a deal with Square in 2012 to have
Square process all credit card transactions. 2.Starbucks also
agreed to invest $25 million in Square and had CEO Howard Schultz
sit on Squares board. 3.Was hoped to offer Square access to the
larger Starbucks network and exposure for the Square mWallet. 4 |
5. Proprietary and Confidential The IPO: The Open Relationship Less
Appealing 1.As a processor Squares profit margins are low, which
will depress stock price. 2.The companys data and software
offerings are immature and still in development. 3.Squares new e-
commerce marketplace, Square Market, faces the daunting task of
competing directly with eBay and Amazon. What To Love 1.An IPO
would give Square the freedom to move away from its profitable
roots as a processor into a bigger future as a
software/data/payments hybrid. 2.Strong name recognition and deep
industry backing indicates it could get a high stock price. 3.If
Apple and Google are out of the game, this is probably the best
option for Square 5 | 6. Proprietary and Confidential For More
Information Please see our exclusive PYMNTS.com coverage for more
on Squares way forward For More On squares complicated relationship
with google For More ON Squares developing for apple For more on
the early days of square and Starbucks. Please sign up for our
daily newsletter SIGN UP 6 | 7. Proprietary and Confidential For
More Information Please see our exclusive PYMNTS.com coverage for
more on Squares way forward For More On squares complicated
relationship with google For More ON Squares developing for apple
For more on the early days of square and Starbucks. Please sign up
for our daily newsletter SIGN UP 6 |
