Munster: it will cost Apple $500 million to buy Tidal

Munster: it will cost Apple $500 million to buy Tidal
Last week, a report in the Wall Street Journal suggested that Apple was in talks to purchase music streamer Tidal. According to Piper Jaffray analyst Gene Munster, the acquisition of Tidal would cost Apple about $500 million. At that price, Jay Z would be getting back nearly nine times the $56 million that he paid for Tidal in 2015. The artist is considered an astute businessman, and this transaction would only boost that reputation.

Obviously, Apple is looking to add more artists to Apple Music's lineup, and Tidal can deliver some that are exclusive to the music streamer. The latter has 4.2 million subscribers compared to the 15 million that are signed up with Apple Music. Apple is chasing category leader Spotify, which counts 30 million paid subscribers (and another 70 million that use its ad-supported free tier).

Apple paid $3 billion for Beats Audio in 2014, its largest acquisition ever. Along with Beats' successful headphones business, Apple picked up Beats Music, a streaming site that had only 111,000 subscribers at the time of the purchase. If Apple does buy Tidal, it would bring together two of the hip hop world's most successful entrepreneurs in Dr. Dre and Jay Z. The former represents West Coast Rap while the latter comes with East Coast sensibilities. The good doctor joined Apple as part of its purchase of Beats.

Currently, Apple Music offers new subscribers a three month free trial. Once that is completed, individuals are charged $9.99 a month ($4.99 for students), and $14.99 a month for families with up to six members. Tidal charges $20 a month for hi-fidelity streaming and $10 monthly for songs streamed in regular quality.

source: Barron's

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11 Comments

1. BobLawblaw unregistered

Beats headphones are some of the most overpriced pieces of crap out there. Isn't there an article somewhere about how Beats put weights in their headphones to make them feel heavier and more premium..

2. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

Amen Brother!

4. legiloca

Posts: 1676; Member since: Nov 11, 2014

I trust JBL or Bose more than Beats, like yikes.. it's just and over-hyped, overpriced, and "overrated" brand. Never will I ever buy one.

12. RebelwithoutaClue unregistered

Bose isn't much better than Beats. Sure they sound less bassy, clearer. But their marketing is better than their products. Especially given their price range. I prefer Sennheiser or Harman Kardon (JBL is owned by HK)

17. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Sennheiser is nirvana.

18. zunaidahmed

Posts: 1183; Member since: Dec 24, 2011

Bose are only ok for noise cancelling headphones, other products are crap, for casual listeners, I would actually agree with you, sennheisers momentum is actually pretty nice.

20. BobLawblaw unregistered

I've got a pair of momentum's. Best headphones I've ever owned.

5. tedkord

Posts: 17288; Member since: Jun 17, 2009

I don't really see this happening. Tidal doesn't have very many subscribers, and they pay higher royalties than other music streamers. Apple likes to pay less than everyone else, not more.

9. threed61

Posts: 259; Member since: May 27, 2011

If Jay Z is such an astute businessman, why is Tidal losing money?

10. Unordinary unregistered

Because it's bad :/

21. Abdbaas

Posts: 140; Member since: Apr 05, 2016

He's an investor. An investor invests to sell later. Who cares if it loses money when he's gonna make 9 times the price he paid for it?

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