Square is said to have talked about acquiring the tide service of Jay-Za

Tide application.

Photographer: Andrew Harrer / Bloomberg

Square Inc., a digital payment company run by Jack Dorsey, held talks on buying Tidal’s music streaming service as part of a diversification effort, according to a person familiar with the situation.

Dorsey was discussing a potential deal with Jay-Z, a rapper and music mogul who bought Tidal for $ 56 million in early 2015, said a person who asked not to be identified because the talks were private. Negotiations must not result in a transaction.

Square and Twitter CEO Jack Dorsey spoke at the Entrepreneurs Empowerment event

Photographer: Cole Burston / Bloomberg

Square declined to comment until Tidal responded to requests for comment.

Tidal, which was first launched in 2014, is trying to keep up with other streaming services, including Spotify Technology SA and Apple Music. Jay-Za’s music itself is bait for the platform, but he is returned his songs to Spotify last year – asking questions about Tidal’s health. The tightly maintained service has not reported a number of subscribers since it said it had 3 million paying customers in 2016.