Tidal app.
Photographer: Andrew Harrer / Bloomberg
Photographer: Andrew Harrer / Bloomberg
Square Inc., the digital payment company run by Jack Dorsey, held talks to acquire the Tidal music streaming service as part of a diversification effort, according to someone familiar with the situation.
Dorsey discussed a potential deal with Jay-Z, the rapper and music tycoon who bought Tidal for $ 56 million in early 2015, said the person who asked not to be identified because the talks were private. Negotiations may not result in a transaction.
Photographer: Cole Burston / Bloomberg
Square declined to comment, while Tidal did not respond to requests for comment.
Tidal, first launched in 2014, has struggled to keep up with other streaming services, including Spotify Technology SA and Apple Music. Jay-Z’s music was an attraction for the platform, but he put his songs on Spotify last year – raising questions about Tidal’s health. The close service has not reported subscriber numbers since it said it had 3 million paying customers in 2016.
Meanwhile, Dorsey has ambitions to build Square into a much larger company of independent complementary services. Square’s two core products, Square Seller and Cash App, already operate somewhat separately in Square Inc., each with its own “leader” in the executive team. It is believed that Dorsey, who spent more than four years on the board of directors of Walt Disney Co. imagines that Square will similarly own a collection of companies under a corporate umbrella.
Photographer: Alberto E. Rodriguez / Getty Images
Dorsey was photographed in August in the Hamptons with Jay-Z and his wife, Beyoncé, and then back in December with the power couple and actor Sean Penn on a beach in Hawaii.
Tidal’s owners include nearly two dozen renowned artists, including Beyoncé, Alicia Keys, Coldplay, Madonna, Rihanna and others, according to its website. The service is available in 53 countries and offers over 60 million songs and 250,000 videos.
The service has tried to use its stellar power to provide experiences that complement its music. This includes a Rihanna show in Paris, broadcast for Tidal members, as well as charity concerts by Jay-Z and Beyoncé.
– With the assistance of Scott Moritz