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Discussion Starter · #1 ·
Ok lets assume ye owns 1.5% of Tidal. This figure I pulled out of the air, as the actual number isnt googleable but this video http://www.wsj.com/video/exec-jay-z-isnt-majority-owner-of-tidal/B523A964-A97E-4509-9249-577C9BCCADEB.html makes it seem it would be at least that much. If apple buys tidal for 3 billi (the number they bought beats at) then ye gets 45,000,000. Better than the drake deal, right? But I don't think that's the price apple is gonna pay. When apple bought beats it was for their streaming service, not their headphones business. The field when they bought it was much wider then, with shit companies like rdio still in the game. They paid a competitive price but not a price built out of necessity. if dre/jimmy wanted more than 3 billi apple probably would have gone "lol whatever" and bought a different streaming service for cheaper.

This is not the case for Tidal! tidal is the direct competitor to Apple now. It does what apple does-- exclusive streaming, but with more lucrative (ye, riri, hov and b are def more famous/drive more traffic than, what, drake, future, swift and dj khaled). It's video streaming side of the service is actually used and tidal artists regularly contribute to it. This scares apple, and creates legitimate risk for future exclusive deals they can sign. If tidal keeps growing at the rate that it is (and there's no reason why it wouldn't) the prospect of ownership that tidal can offer is potentially worth more to artists than the buckets of cash that apple throws around.

So this isn't an acquisition for the portfolio, like for instance yahoo buying tumblr. This isn't a acquisition from a buffet of other options... they couldn't offer the same deal to pandora or whatever if Tidal asks for "too much." This is the attempted buyout of a healthy and growing direct competitor with no other competitors in the industry coming close.

So what do the numbers actually look like? Well, the best thing to compare it to is facebook's buyout of instagram. facebook paid 6 billi for insta cuz they felt like their core userbase was going over to that platform, that insta was a direct competitor to facebook that was acquiring the users that facebook would have acquired otherwise. And that even isnt a company that was doing the same thing as facebook, just a company who directly competed for users. lol they paid only 1 billion i remembered wrong. So then the question is, how much would google (plus) pay for facebook at the healthiest period of facebook's growth and relevancy? That's a huge number to imagine, isn't it? That's the figures you should be thinking about when it comes to tidal.

So the question becomes, how much is the domination of the business of music worth to apple? Apparently a lot, as apple is looking to shut down iTunes singles sales in a few years to exclusively sell music through streaming. They are betting hard that the purchase of mp3s will go the way of purchasing digital copies of movies. how much is that worth? Retail worldwide for music, just music, not touring/sponsorship etc per annum is 15 billion as of 2014. In terms of music streaming, that's probably about a third of that market (according to 2015 riaa numbers) and growing. so lets say that the rumors are true and itunes does go down. it would not be a stretch to assume that figure will grow to half of the market. so lets assume that streaming is worth 10 billion a year. let's say that apple captures half that with the tidal buy, as most people with still use spotify with adblock like i do. how much is a growing buisness that brings in 5 billion a year worth? well, lets look at an entertainment company that brings in an equivalent amount, but without the marketshare dominance that an entity like tidal-applemusic would have. Electronic Arts, the video game company, brings in 4.3 billion per annum and has a stock price of about 75 bux a share. It is worth 20.4 billion at market cap (not a buyout price, as that would be based on total market valuation). look at those numbers! makes yr head spin, rite?

So all of this basically sums up to this: let's assume that apple gets a good deal and buys it for the same price that facebook bought instagram. 6 billion. This translates to 900,000 for ye if we assume he owns 1.5%. lol shout out to jjdsjfsdjfs for pointing out my mistake But I dont think hov is gonna settle for a good deal. I bet samsung offered a good deal a year ago. No, with line of reasoning i outlined above, I think hov isn't crazy to hold out for ELEVEN FIGURES. as in at least 10 billion. which means 1.5% of tidal would be worth 150 Million USD paid out in cash and apple stock. Now that's how you work a stove.

 

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Discussion Starter · #5 ·
InfiniteAverage said:
in, that was a nice read
it just goes to show that offering ye 100 million for the life of pablo might have not only been plausible but might actually have been a considered business move from apple
 

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Discussion Starter · #7 ·

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id guess more in the range of 500-800MM. beats had an immense market share and ridiculous profit margin. streaming services all face a fare share of financial hurdles. spotify is valued at 8.5 billion after their last round of funding and has over 100 million users. tidal has about 3 million.
 

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mgx said:
id guess more in the range of 500-800MM. beats had an immense market share and ridiculous profit margin. streaming services all face a fare share of financial hurdles. spotify is valued at 8.5 billion after their last round of funding and has over 100 million users. tidal has about 3 million.
its not about how much the service is worth it's about bringing the exclusive artists over to apple and apple subsequently making triple what they are gonna pay for it
 

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Discussion Starter · #13 ·
mgx said:
id guess more in the range of 500-800MM. beats had an immense market share and ridiculous profit margin. streaming services all face a fare share of financial hurdles. spotify is valued at 8.5 billion after their last round of funding and has over 100 million users. tidal has about 3 million.
tbh i admit in the op that apple in 2016 can probably get it around 6 but there's a line of argument that hov can lead negotiations asking for 10
 

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Discussion Starter · #15 ·
TIDAL said:
Acting like they only bought the streaming service :jordanlaff:
they did and admitted as such
 

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Hit_wonda said:
thats what op said I'm using him as my source
:hah: makes sense now.

They didn't pay 3 billion for a streaming service by Beats they paid for the whole damn company
 

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trap-a-holic said:
they did and admitted as such
you right about 6-10 bil being the goal
This deal would be buying beyonce
Jay
Kanye
Rihanna
And many more artists to be able to be exclusive to Apple Music
 

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Discussion Starter · #19 ·
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