Payment processing platform Square has acquired the engineering team of social media platform Yik Yak for less than $3m, Bloomberg reported yesterday, citing a person familiar with the matter.
The company had raised $73.5m from investors including social media company Renren and was reportedly valued at up to $400m in a $62m series B round in 2014 led by venture capital firm Sequoia Capital.
Although the deal does not constitute an exit for Yik Yak’s investors, it does suggest the company is on its way out after several controversies regarding bigoted statements on its mainly anonymous microblogging platform. It had already reduced its head count from 50 to 30 in December 2016.