Maybe this is what that Hamptons meet-up was about.
Square CEO Jack Dorsey has held talks with Jay-Z about his payments firm acquiring Tidal, the Brooklyn-born rapper’s music streaming service, a new report says.
Dorsey — the co-founder and CEO of Twitter — is interested in taking over Tidal in an effort to diversify Square’s business, Bloomberg News reported Wednesday, citing an unnamed source familiar with the situation.
It’s unclear how much the Cash App parent is willing to pay for Tidal — which has struggled to compete with larger rivals Spotify and Apple Music — and the discussions may not lead to a deal, the outlet reported Wednesday.
But the report may shed some light on Dorsey’s August yacht ride in the Hamptons with Jay-Z and his wife, Beyoncé. The tech tycoon and the music mogul were also spotted hanging out on a beach last month with actor Sean Penn.
Neither Square nor Tidal immediately responded to a request for comment early Thursday.
Dorsey is taking a look at Tidal — which Jay-Z bought for $56 million in 2015 — with hopes to bring a wider range of products and services under Square’s roof in a setup similar to Disney, where Dorsey sat on the board for more than four years, Bloomberg reported.
But Tidal has struggled to gain a foothold in the music-streaming wars. The company hasn’t put out subscriber figures since 2016, when it said it had 3 million paying users, according to Bloomberg. Spotify, by contrast, had 50 million paid subscribers by March 2017.
Jay-Z isn’t Tidal’s only owner. Wireless carrier Sprint — now owned by T-Mobile — bought a 33 percent stake at a $600 million valuation in 2017, and fellow musicians including Beyoncé, Alicia Keys, Kanye West and Madonna are also listed as “artist-owners” on Tidal’s website.