This Is Why Square Wants To Get Its Hands On Tidal

CBx Vibe: Izzo (H.O.V.A.)” Jay-Z

By Justice Allen

  • Square reported revenues of $3B in Q3’20
  • Tidal was most recently valued at $600 million (2017)

Sean “Jay-Z” Carter may have one less problem on his hands after recent reports that Jack Dorsey’s Square (SQ +4.56%) has expressed interest in acquiring his challenged music-streaming platform Tidal. Square is looking to diversify its portfolio and take advantage of Tidal’s existing cultural fanbase. What’s even more interesting is that Square has the capital to make something like this a reality. The company reported $3 billion in revenues in Q3’20 along with $794 million in gross profits. Tidal’s most recent reports from 2018 show a loss of $37 million.

Why This Matters: Tidal hasn’t taken off the way some would have imagined, but it’s existence as a cultural milestone when it comes to Black entrepreneurship cannot be denied. After acquiring the company in 2015 for $56 million, Tidal was valued at $600 million just two years later. While larger platforms like Spotify remain in the lead with massive sales, Jay-Z has managed to make Tidal culturally relevant. This cultural relevance also plays a big role in Square’s potential interest.

Tidal’s most recent reports from 2018 show a loss of $37 million

Cash App has proven to be Square’s cash cow, raking in $849 million in gross profit in 2020. A major component to Cash App’s growth lays in its utilization of hip hop influencers, who’ve worked wonders in helping Cash App acquire new customers. This is where Tidal and its roster of rap all-stars can come into play.

What’s Next: Figures haven’t been announced as it is still very early on, but if the whispers are true then it would be a massive win for one of Brooklyn’s finest. Just to reiterate, the conversations are merely reports at the moment. That said, we’re holding out hope that Jay-Z can add another notch to his already legendary belt. We’ll be keeping an eye on the story as it develops, but in the meantime let’s toast Hov for getting the conversation started.

CBx Vibe: Izzo (H.O.V.A.)” Jay-Z


Justice Allen

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