Samsung again considering Tidal purchase
As Tidal approaches its first anniversary of hilarious mediocrity, electronics giant Samsung is once again spreading rumors that they might buy out the struggling company. With a current valuation that is actually less than the likes of Jay Z have pumped into it since early 2015, Samsung is no longer the only group considering a takeover.
Both Google and Spotify have also made points of not denying their interest in purchasing the property, though Samsung seems to be the current frontrunner for a number of reasons, not the least of which is attempting to add a native music streaming service into their phones much in the way Apple does with Apple Music. Add to that their existing relationship with Jay Z, and they seem the ideal buyer.
Multiple sources have cited an approximate $100 million valuation of Tidal, and when one considers that Jay Z paid more than half that just for Aspiro AB (the company that became Tidal), it supports the idea that Tidal has largely been a commercial failure. From a number of changes in top executives to a pair of completely botched exclusive releases, the company has excelled at shooting themselves in the foot. Chances are, stakeholders would jump at the idea of being run by a larger organization that understands how to do good business.
One source close to the Samsung movements said that the company is “working on something really big. But they’re keeping it very quiet in case it leaks.” Irony aside, from a business perspective it makes perfect sense. Samsung can quickly absorb Tidal’s losses and help it get more exposure by having it as a default on their mobile devices, including the massively successful Galaxy series. Along with that, an influx of cash from Samsung would allow Tidal to develop elements to improve their service and attempt to set themselves apart from their competitors.
In terms of subscribership, Tidal boasts a mere 1 million users, which pales in comparison to Pandora’s estimated 10 million and Spotify with nearly three times that number. Even the uninventive Apple Music has managed to get to double digit millions of paid subscribers in less time that Tidal, though in fairness, Apple had a massive head start from their iTunes userbase.
One way or another, it would appear that Tidal will see some sort of large scale change before the year is out, and most expect them to sell sooner as opposed to later – as their current track record leads many to believe they’ll be out of business if they don’t right the ship before summer.
[Billboard | photo: Getty]