What's Going To Happen To Square?

Square Stumbles Into Possible Buyout
·       Article confirmed by 2 and 3 people familiar with the company - Sq denied
·       What they do
o   Credit Card Processing - sq
o   Online Market Place - mkt
o   Quick Pay - Cash
o   Starbucks partnership - Wallet
·       Possible Buyers
o   Ebay - Paypal
o   Google - Checkout
o   Apple - general billing

• Square recorded a loss of roughly $100 million in 2013, broader than its loss in 2012, according to two people familiar with the matter.
• Sale worth billions 5.2 roughly
• square-shaped credit-card readers:
  • 1 million merchants
  • processed 20 billion in 2013
  • 550 million in revenue
• Problems
  • Customer charges 2.75%
  • four-fifths of that money is spent on fees to payment networks like Visa and MasterCard other financial intermediaries and fraud costs.
  • GS gave them credit facility of 100 million
• exploring IPO options
• Starbucks partnership
  • gained millions of payees
  • billions in transactions
  • only got 2% of earnings
  • lost 20 million from total deal