Per Mark Sweeney in The Guardian:
“Why would a music streaming company and a financial services company join forces?!,” Dorsey posted on Twitter, posing the obvious question as he announced the news. “It comes down to a simple idea: finding new ways for artists to support their work. New ideas are found at intersections, and we believe there is a compelling one between music and the economy.”
This is great news if you’re Jay-Z. He will cash out cash out with a tidy profit for his also-ran music service. I was surprised to learn that Tidal’s value appreciated so much since he bought it.
It sure seems like a bad deal for Square, though, who accepts a ton of business risk without much benefit. I probably don’t know what Tidal’s cultural cache is—I had assumed that most people had never heard of it—so I can’t appreciate its value. Still, even if the acquisition sounds like a bad idea, $300 million is play money to the Jay-Zs and Jack Dorseys of the world, so who cares?