Rumor claims that Jack Dorsey's Company 'Square' is discussing a Potential Acquisition of 'Apple Music' competitor 'Tidal'
Could a Tidal buyout be in the offing? Maybe, according to Bloomberg. The outlet is reporting that Square, the payments company run by Twitter co-founder and CEO Jack Dorsey, has discussed a potential acquisition with Jay-Z, the rapper and entrepreneur who bought Tidal in early 2015.
Bloomberg cites an unnamed source and has emphasized that a deal isn’t guaranteed. Still, the report is an intriguing one. Tidal is a direct competitor to Spotify, Apple Music, YouTube Music and Amazon Music Unlimited.
With all its drawbacks, "Tidal still has some advantages. Users can pay for a HiFi plan which unlocks streaming options — HiFi and Masters (2304-9216 Kbps) -- that are higher quality than anything offered by Apple and Spotify.
Square, meanwhile, is performing tremendously well. The company initially gained momentum with its square-shaped card readers, which small merchants could connect to their phone or tablet through a 3.5mm headphone jack. The company has since expanded into a host of lucrative merchant services and launched a consumer-facing smartphone app, Cash App, for transferring money, buying stocks and other banking-related tasks. For more, read the full story here.
It's a little difficult to read the tea leaves as to why Twitter's CEO may want to acquire Tidal under his company Square and not Twitter. Perhaps Square's stock price at US$231/share versus Twitter's stock price at US$54 makes it easier for financing a Tidal sized acquisition.
The rumor may have also been generated to change the topic of Twitter being associated with negative anti-trust issues.
Until something concrete comes of this rumor, it's little more than entertaining chatter for social media this morning.