Square Sale Could Impact Twitter

NEW YORK (TheStreet) - Whether Google (GOOG) buys Square or not, it may be beside the point for Twitter (TWTR). No matter what, the Jack Dorsey chaired micro-blogging site could be impacted by Square's future.

Square, an upstart mobile payments processor was founded and is currently run by Jack Dorsey. Dorsey is also a co-founder of Twitter; however, he left the company's day-to-day operations in 2008 amid a shakeup that put fellow co-founder Evan Williams briefly in charge with the site's reins. Nevertheless, Dorsey holds a crucial role at Twitter as Chairman of the company's Board of Directors.

Were Square to be sold to a competitor, it could put Twitter in an awkward place. If Dorsey sought to continue running the operations of Square in the event of a sale to a larger technology conglomerate, it might raise conflicts of interest that make it harder for him to remain the chairman of Twitter.

On Monday, The Wall Street Journal reported that Square had discussed a possible takeover by Google earlier in 2014, amid continued losses and draining cash balances at the company. Square has also held discussions with Apple (AAPL) and eBay's (EBAY) PayPal division, the WSJ reported.

Some of those potential Square suitors could present a problem for Twitter. For instance, Google is listed as a direct competitor to Twitter in its annual 10-k filing.

"We compete against many companies to attract and engage users, some of which have greater financial resources and substantially larger user bases, such as Facebook (including Instagram), Google, LinkedIn, Yahoo! and Microsoft," Twitter said.

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