In late December, Bloomberg reported that fintech company Square (NYSE: SQ) was in talks to buy music streaming service Tidal in a “push to diversify.” No potential offer price was given, but Square CEO Jack Dorsey has been seen twice in the last few months with Tidal’s majority-owner Jay-Z, supposedly negotiating some sort of partnership.
Tidal has struggled over the years to gain ground relative to other streaming services like Spotify and Apple Music, so it makes sense that it would be searching for a buyer. But why Square? On its face, this potential tie-up seems strange. However, if investors look deeper into what Square is doing with its Cash App peer-to-peer payment service, they may realize that such a combination wouldn’t be so odd after all.