It was reported recently that Apple is in discussions with Tidal for a possible acquisition. This Jay-Z owned service won’t be the first music streaming service that Apple buys off of a music icon, it has already acquired Beats from Dr. Dre and rolled it into Apple Music. No numbers were mentioned in the initial report but an Apple analyst is of the view that it might cost the company $500 million to acquire Tidal.
Apple Music is already far ahead of Tidal when it comes down to subscriber numbers, it’s second only to Spotify, so it’s not like Tidal represents any real competition to Cupertino’s music streaming service.
Given the sheer star power behind this service, Apple’s reason for trying to acquire Tidal is said to be access to more exclusive content which has so far been the biggest selling point of Tidal. Most of Jay-Z’s friends who have made it big in the music business have sent business Tidal’s way by offering exclusive content to the service.
Piper Jaffray analyst Gene Munster believes that for this reason, Apple might pay as much as $500 million for Tidal. Given that Jay-Z snapped it for $56 million, I don’t think he will complain about the rate of return on this investment.
Filed in . Read more about Apple Music and Tidal. Source: phonearena