Square is said to have discussed the acquisition of Jay-Z’s tidal service

The Tidal app.

Photographer: Andrew Harrer / Bloomberg

Square Inc., a digital payment company run by Jack Dorsey, has been in talks to acquire the streaming music service Tidal as part of an effort to diversify, according to a person familiar with the situation.

Dorsey discussed a possible deal with Jay-Z, the rapper and music mogul who acquired Tidal for $ 56 million in early 2015, said the person, who asked not to be named because the negotiations were private. Negotiations may not result in a transaction.

Jack Dorsey, CEO of Square and Twitter, speaks at an entrepreneur training event

Photographer: Cole Burston / Bloomberg

Square declined to comment, while Tidal did not respond to requests for comment.

Tidal, which launched in 2014, has been struggling to keep pace with other streaming services, including Spotify Technology SA and Apple Music. Jay-Z’s own music has been bait for the platform, but he put his music back on Spotify last year – raising questions about Tidal’s health. The closed service has not reported subscriber numbers since it said it had 3 million paying customers in 2016.