Why Twitter, Not Square, Should Have Bought Tidal
Fintech stalwart Square (NYSE: SQ) is buying a majority stake in the streaming music service Tidal for $297 million in cash and stock. Jay-Z, who owns Tidal through his holding company, Project Panther Bidco, will join Square's board. The acquisition raised eyebrows since Square mainly provides online payment services for merchants, and peer-to-peer payments, Bitcoin (CRYPTO: BTC) purchases, and stock trades for consumers.
In a threaded tweet, Square CEO Jack Dorsey, who also leads Twitter (NYSE: TWTR), defended the purchase by declaring that Square's payment services could help Tidal's musicians "support their work," and there were still plenty of "compelling" growth opportunities "between music and the economy."
But as a Square investor, I still can't see the synergies between Square and Tidal. Instead, I think Tidal would have been a better fit for Twitter, which is already a major promotional platform for musicians.
Source Fool.com
