The Tidal app.
Photographer: Andrew Harrer / Bloomberg
Photographer: Andrew Harrer / Bloomberg
Square Inc., the digital payments company led by Jack Dorsey, has been in talks to acquire the music streaming service Tidal as part of an effort to diversify, a person familiar with the situation said.
Dorsey has discussed a possible deal with Jay-Z, the rapper and music mogul who took over Tidal for $ 56 million in early 2015, the person said, asking not to be identified because the talks were private. Negotiations must not lead to a transaction.
Photographer: Cole Burston / Bloomberg
Square declined to comment, while Tidal did not respond to requests for comment.
First launched in 2014, Tidal is struggling to keep up with other streaming services, including Spotify Technology SA and Apple Music. Jay-Z’s own music was a bait for the platform, but he put his songs back on Spotify last year, raising questions about Tidal’s health. The closely-tracked service has not reported any subscriber figures since it said it had 3 million paying customers in 2016.
Dorsey has the ambition to make Square a much broader company consisting of independent, complementary services. Square’s two core products, Square Seller and Cash App, already operate somewhat separately within Square Inc., each with their own “lead” in the executive team. It is believed Dorsey, who has spent more than four years on the board of Walt Disney Co., envisions that Square will similarly own a collection of businesses under one corporate umbrella.
Photographer: Alberto E. Rodriguez / Getty Images
Dorsey was photographed in August in the Hamptons with Jay-Z and his wife, Beyoncé, en then again in December with power couple and actor Sean Penn on a beach in Hawaii.
Tidal’s owners include nearly two dozen high-profile artists, including Beyoncé, Alicia Keys, Coldplay, Madonna, Rihanna and others, according to his website. The service is available in 53 countries and offers more than 60 million songs and 250,000 videos.
The service has tried to use its star power to provide experiences that complement its music. That includes a Rihanna runway show in Paris that was streamed for Tidal members, as well as charity concerts by Jay-Z and Beyoncé.
– With help from Scott Moritz