Apple Might Be Getting Set To Make Jay-Z An Even Richer Man
If things are going the way they sound like they could be going, Jay-Z is about to net another enormous payday – conceivably the biggest of the hip-hop mogul/entrepreneur’s career.
Sources indicate that Apple is in serious talks with H.O.V.A. about a potential acquisition of the music streaming service he founded, Tidal.
In February, Samsung was also engaged in talks to acquire the music streaming service, but talks fell through and no deal was ever struck. At the time, some industry execs quoted Tidal’s value to be around $100 million, down from $250 million when it first launched.
However, given the recent success of both Kanye West’s The Life Of Pablo album release and music video debut of ‘Famous’ via Tidal, investors are seeing much value in the exclusivity of the user experience. Some believe that $250 million valuation may again be valid, if not exceeded should an acquisition take place.
The Wall Street Journal offered up some more information bout the ongoing business talks:
The talks are ongoing and may not result in a deal, these people said. Apple is exploring the idea of bringing on Tidal to bolster its Apple Music service because of Tidal’s strong ties to popular artists such as Kanye West and Madonna.
Terms of the potential deal aren’t known.
[Jay-Z] has given 19 famous artists and bands small stakes in Tidal and promised each millions of dollars worth of marketing, according to people familiar with the matter.
A Tidal spokesman said Tidal executives had not held talks with Apple.
Deny, deny, deny! First rule of business, nothing’s final til the ink is dry.
All things considered, this wouldn’t be a bad payday for Jay-Z & co. at all, considering his investment in Tidal was only $56 million when he purchased the company in March of 2015.