Samsung, Google and Spotify Have Considered Buying Tidal: Report

[The Midnight Marauder]

the fact that huge companies have eyes on it tells u jay is doin the right thing

No! He's doing the only think he has a choice to do right now!

He acquired the company Aspiro for $56 Million. He took the company, then revamped and rebranded it as Tidal. Taking into consideration the costs needed to rebrand, relaunch and market Tidal, (they had a HUGE advertising push, where as most streaming services don't advertise much at all). And the exclusive deals he locked in prior to the release, it's safe to say that added up to an additional $25 Million. So you're talking $81 Million to launch a company that a year later, is valued at $100 million dollars. Say he sells the company for $125 Million; that means he would make $44 million off the sale. MEANING HE LOST $12 MILLION DOLLARS OFF OF TIDAL. And that's not even taking into consideration whatever money he lost during the first year in operating expenses.

This isn't a power move, it's a retreat. If he doesn't sell now, he'll lose even more money.

The big companies are only interested in buying because it takes away the burden of not having immediate access to the few major artists Tidal has exclusivity deals with, a slight amount of brand recognition, and the Hi Fi Audio.

I fukk with J, but this is a loss pure and simple.

 

[Teko]

Haters out in full force. The way Tidal works means that any investment by an outside will be a monitor stake in any case.

If it comes pre-installed in Samsung phones, it's it's we for all haters. The app is incredibl and has undoubtedly the best content in the Music market - I use it daily.

 

[The Midnight Marauder]

how u know what another nikka can afford bruh?

Jay can afford to pay a $1 billion a year for music licences(expenses that will probably increase to closer to $2 Billion a year once the current label streaming agreements expire) along with all the other yearly operating expenses (another $250-$500 million)???? He can afford to likely take a loss of $200 million a year for the next 5-8 years to keep the service going????

This ain't a clothing label or some liquor brand fam. This was a TOTALLY different game that Jay tried to get into, and he was in over his head, sorry to say.

 

[No1]

You don't understand how the game works my G.

Music Streaming services are a long term investment at this point. NONE of the companies are making profit off of it yet, and it'll probably be a decade from now until they finally break even. Streaming companies lose hundreds of millions of dollars a year, but the general consensus is that once the market matures, the profits will be huge. This is why so much money is invested into them.

Jay and all his minority owners can't afford to keep Tidal running on their own. You've gotta put up a billion a year just to have the streaming licences for all the major label's music. That's why only huge companies like Apple, Google and Amazon are staying afloat. They can lose a billion dollars and be straight. Spotify has billions invested in them from places like Goldman Sachs, they'll be straight too. Pandora and SoundCloud are bigger services than Tidal, and theyre trying to sell off too. When the streaming market settles, there's only gonna be a handful of big companies in the game. Similar to the Cell Phone and Cable industry.

I understand very well and have shown that time and again. Number 1, Spotify is making a profit. But it did not start to make it until last year.

Jay never claimed to be able to keep Tidal running on his own. He needed funding, just like Spotify. His own CFO said that. Apple is different because of that 200 billion it sits on. Amazon does not really stream lke that. They have 1 million songs available. None of what you said addresses anything that I said and you have no idea how Tidal's funding is going. You're just speculating without any actual information. All we ever know about Tidal is through what Hov let's out every 4 months. Vogel was talking about acquiring funding as recently as last year. That's just common sense.

You're starting from the assumption that Tidal's team is stupid enough to be unaware of how to acquire funding or to look for it and that Jay is using all of his own money when he's never liked to use his own money for anything. That is entirely contrary to how he does business.

 

[JerseyBoy23]

Watch everyone who said they'd never subscribe to Tidal jump on the bandwagon once it integrates with Samsung phones.

 

[JayGatsby]

No! He's doing the only think he has a choice to do right now!

He acquired the company Aspiro for $56 Million. He took the company, then revamped and rebranded it as Tidal. Taking into consideration the costs needed to rebrand, relaunch and market Tidal, (they had a HUGE advertising push, where as most streaming services don't advertise much at all). And the exclusive deals he locked in prior to the release, it's safe to say that added up to an additional $25 Million. So you're talking $81 Million to launch a company that a year later, is valued at $100 million dollars. Say he sells the company for $125 Million; that means he would make $44 million off the sale. MEANING HE LOST $12 MILLION DOLLARS OFF OF TIDAL. And that's not even taking into consideration whatever money he lost during the first year in operating expenses.

This isn't a power move, it's a retreat. If he doesn't sell now, he'll lose even more money.

The big companies are only interested in buying because it takes away the burden of not having immediate access to the few major artists Tidal has exclusivity deals with, a slight amount of brand recognition, and the Hi Fi Audio.

I fukk with J, but this is a loss pure and simple.

how is it a loss

wtf....

dont even answer

 

[Icantspell]

Watch everyone who said they'd never subscribe to Tidal jump on the bandwagon once it integrates with Samsung phones.

Samsung

They ain't got pull like that.

 

[scarhead]

I understand very well and have shown that time and again. Number 1, Spotify is making a profit. But it did not start to make it until last year.

Jay never claimed to be able to keep Tidal running on his own. He needed funding, just like Spotify. His own CFO said that. Apple is different because of that 200 billion it sits on. Amazon does not really stream lke that. They have 1 million songs available. None of what you said addresses anything that I said and you have no idea how Tidal's funding is going. You're just speculating without any actual information. All we ever know about Tidal is through what Hov let's out every 4 months. Vogel was talking about acquiring funding as recently as last year. That's just common sense.

You're starting from the assumption that Tidal's team is stupid enough to be unaware of how to acquire funding or to look for it and that Jay is using all of his own money when he's never liked to use his own money for anything. That is entirely contrary to how he does business.

Tidal X Samsung makes sense for both parties.
Tidal obviously will benefit from Samsung's war chest with their equity stake and Samsung will get a well-known media platform and can easily expedite the adoption/distribution by making it the default streaming app on Samsung devices.
At this point, Samsung worries about Xiaomi more than Apple and while Xiaomi is catching up fast in terms of hardware, they're still behind in contents and service offerings.
They should move on it just to prevent Xiaomi from getting it IMO.

And best believe Jay and them knew about the demand side coming from the cell phone manufacturers before getting into the business.
Leverage your brand, flex your muscle to get other big name artists on board, market the shyt out of it, and flip it to a conglomerate.
Although they failed to execute properly on the actual marketing campaign part, the overall strategy seems to be working out well.

 

[Anerdyblackguy]

I really hope Samsung doesn't buy this. I'm pretty sure they won't allow that app to be on IPhones. This would be so demoralizing. I'm already a Tidal subscriber!!

 

[larryshogunz]

LOL....

Fukkas on here acting like they know what Jay can/cant afford. Can't believe there are people who think Jay and his team are desperate and brainless when it comes to business. And people on here "try" to tell you how it is, when they cant do it themselves and continue working average jobs just like everyone else. After only operating for over a year, Tidal doesn't even know how large they can grow. And maybe that's why other Top streaming companies wanna buy them out, because they see the potential growth in the future.

 

[No1]

I really hope Samsung doesn't buy this. I'm pretty sure they won't allow that app to be on IPhones. This would be so demoralizing. I'm already a Tidal subscriber!!

You think so? I mean, you can get apple music and samsung phones so I don't see why not. That is interesting though.

 

[Anerdyblackguy]

You think so? I mean, you can get apple music and samsung phones so I don't see why not. That is interesting though.

I just think Samsung is going to want to play the EXCLUSIVE train way too much.

 

[Harry B]

No! He's doing the only think he has a choice to do right now!

He acquired the company Aspiro for $56 Million. He took the company, then revamped and rebranded it as Tidal. Taking into consideration the costs needed to rebrand, relaunch and market Tidal, (they had a HUGE advertising push, where as most streaming services don't advertise much at all). And the exclusive deals he locked in prior to the release, it's safe to say that added up to an additional $25 Million. So you're talking $81 Million to launch a company that a year later, is valued at $100 million dollars. Say he sells the company for $125 Million; that means he would make $44 million off the sale. MEANING HE LOST $12 MILLION DOLLARS OFF OF TIDAL. And that's not even taking into consideration whatever money he lost during the first year in operating expenses.

This isn't a power move, it's a retreat. If he doesn't sell now, he'll lose even more money.

The big companies are only interested in buying because it takes away the burden of not having immediate access to the few major artists Tidal has exclusivity deals with, a slight amount of brand recognition, and the Hi Fi Audio.

I fukk with J, but this is a loss pure and simple.

The exclusives are co-owners or his own artists.

And your mathematics are completely off, if he invests 81 and receives 125, how the hell is that a loss? Tidal is just the name, the company is the same.

 

[CodeBlaMeVi]

It'd be kinda hilarious if after all this music revolution, change the game forever, ownership talk they sold out to the first corporate offer they received and the whole thing was revealed as just another quick money grab

That's what it all was. Jay loses for just $100M and have to split. After taxes, he'll lose a few mill.

 

[beenz]

100 million to Samsung is nothing.
They should do it as a 'just in case' buy IMO.

that ain't shyt to google either. I dont know if spotify got enough chips tho to hang with the two big boys.