Square Acquiring Majority of Tidal Music Service

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steve149

steve149

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Sep 26, 2011
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Digital payments company Square is set to acquire a “significant majority” of Tidal, the music streaming service led by Jay-Z. Tidal will operate independently under Square, and the $297 million cash and stock deal will place the rapper on Square’s board of directors. The goal is to help artists find “better tools to assist them in their creative journey,” said Jay-Z. The move comes less than two weeks after the rapper sold half of his Champagne brand to luxury goods giant LVMH, and less than a month after Square owner Jack Dorsey and Jay-Z teamed up on a bitcoin endowment.
 
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IceBurghDJ said:
weird...never heard of tidal, and why would a financial processing company expand that direction?
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Because if they have 5 million customers paying $9.99 each, you get to process $50 million in transactions each month and keep 100% of the profits.

Also because 24 million people have used Square at some point, and you can easily introduce a lot of those people to the Tidal music service.
 
Yeah, still sounds like a bad idea.

We had a few places here that combined pizza with videos, back in the day. Order a pizza and they'll bring a DVD.

Seems like a good idea...never really worked out too well, even when renting videos was popular.

Or harley dealerships that had restaurants in them. Didn't seem to work out either.
 
IceBurghDJ said:
Yeah, still sounds like a bad idea.

We had a few places here that combined pizza with videos, back in the day. Order a pizza and they'll bring a DVD.

Seems like a good idea...never really worked out too well, even when renting videos was popular.

Or harley dealerships that had restaurants in them. Didn't seem to work out either.
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It's not like they're combining the two businesses, they're just acquiring majority ownership of one. It's good for their bottom line and gives them some diversification, much like how Microsoft owns LinkedIn and Waze. There are other advantages, too - Square having an ownership stake in Tidal gives them access to a platform, developers and an incredible successful and well-known entrepreneur (Jay-Z).
 
B-Sharp said:
It's not like they're combining the two businesses, they're just acquiring majority ownership of one. It's good for their bottom line and gives them some diversification, much like how Microsoft owns LinkedIn and Waze. There are other advantages, too - Square having an ownership stake in Tidal gives them access to a platform, developers and an incredible successful and well-known entrepreneur (Jay-Z).
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Actually, Google owns Waze ..
 
You could get majority ownership in Sears/Kmart...doesn't make it a good idea.

Like CitiCorp buying Pizza Hut...what does a banking instituion knwo about the restaurant business?

Diversification is great in a stock portfolio, but to own very diverse companies usually doesn't work well - different markets, product/service, different customers, etc.

now if you said they bought cash app, or a check cashing company or a finance or mortgage company I'd say that makes sense.

B-Sharp said:
It's not like they're combining the two businesses, they're just acquiring majority ownership of one. It's good for their bottom line and gives them some diversification, much like how Microsoft owns LinkedIn and Waze. There are other advantages, too - Square having an ownership stake in Tidal gives them access to a platform, developers and an incredible successful and well-known entrepreneur (Jay-Z).
Click to expand...
 
IceBurghDJ said:
You could get majority ownership in Sears/Kmart...doesn't make it a good idea.
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Depends on what you could have had it for and how much the pieces and branding are worth ...
 
I believe what they want to Tidal for is the ability to start incorporating Non-Fungible Tokens (NFTs) using the artist network of Tidal for distribution. Square already owns Bitcoin and processes crypto transactions as part of their CashApp product. I think this will lead to their next step in that space.
 
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I did not know Jay-Z's involvement with Tidal - helps explain Serato using it. They seem hell bent on becoming the Hip Hop/Scratchers DJ software of choice.
 
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