Jack Dorsey fintech payments company Square Inc (NYSE: SQ) is in talks to acquire Jay-Z’s music streaming platform, Tidal, a source told Bloomberg.
What happened: Jay-Z bought Tidal in early 2015 for $ 56 million and met with Dorsey to discuss the sale of his music streaming company, Bloomberg reported on Thursday.
Dorsey would be interested in Tidal as a way to diversify Square.
Dorsey’s vision for Square is to become a set of multiple businesses in a corporate structure, the report said.
The company’s main Square Seller and Cash App operate independently and are managed by separate executive teams.
Because it’s important: Dorsey will probably find a way to combine Tidal with his social media company Twitter Inc (NYSE: TWTR). He also has a good experience in media and entertainment, having served as a Walt Disney Co (NYSE: DIS) advisor for more than four years.
Dorsey would face an uphill battle in the form of intense competition from the industry titan Spotify Technology SA (NYSE: SPOT).
Related link: Spotify is finally expanding into the home of K-Pop
What is the next: It is not clear how Dorsey would change Tidal.
The streaming service already boasts tremendous star power, with a team of owners that includes not only Jay-Z and his wife Beyonce, but Madonna, Rihanna, Alicia Keys, Coldplay and others.
The negotiations remain private and may not result in an acquisition, Bloomberg said.
Photo courtesy of Square.
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