Sprint is owned by SoftBank. With > $100 Billion in liquid assets SoftBank determines and has so for some time what exactly Sprint will or will not do.
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Sprint Buys 33% of Jay Z's Streaming Music Service Tidal, Plans Exclusives for Customers
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Sprint is owned by SoftBank. With > $100 Billion in liquid assets SoftBank determines and has so for some time what exactly Sprint will or will not do.
Do they honestly think people are going to sign up to 5 services doing basically the same thing just to listen to an album of someone they like? How dumb can you be. Seriously. This just drives people back to pirating instead of making a few cents at least
truthertech said: ↑
Of course it doesn't work that way. If, for the sake of argument, Sprint grossly overpaid for a portion of Tidal, it doesn't necessarily follow that value is imputed to the whole.
You have a misunderstanding about business valuations. The valuation Sprint put on the company doesn't mean that subsequent potential investors will decide that Tidal is now worth $600 million. Indeed, subsequent investors may decide it is worth less now that Sprint, with losses of billions of dollars,is effectively majority owner.
Put in lay terms, if you sell a third interest in your 1994 Ford Focus to your crazy uncle for $100k, it doesn't mean you are now driving around a car worth $300K. In fact, since your crazy uncle now owns part of it, it will likely be worth even less to future buyers.
Of course it doesn't work that way. If, for the sake of argument, Sprint grossly overpaid for a portion of Tidal, it doesn't necessarily follow that value is imputed to the whole.
You have a misunderstanding about business valuations. The valuation Sprint put on the company doesn't mean that subsequent potential investors will decide that Tidal is now worth $600 million. Indeed, subsequent investors may decide it is worth less now that Sprint, with losses of billions of dollars,is effectively majority owner.
Put in lay terms, if you sell a third interest in your 1994 Ford Focus to your crazy uncle for $100k, it doesn't mean you are now driving around a car worth $300K. In fact, since your crazy uncle now owns part of it, it will likely be worth even less to future buyers.
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In Tidal’s defense, I preferred the more pristine sound quality of its uncompressed CD-quality files to the compressed audio formats of Apple and others. Even if you’re not an audiophile with sensitive hearing, you’ll appreciate the difference if you use decent audio equipment.
Of course, if the bulk of your listening is done with Apple’s iPhone and earbuds, you won’t notice a huge difference. I'm sure the hardware limitations are why Apple doesn’t bother to offer HD audio.
Of course, if the bulk of your listening is done with Apple’s iPhone and earbuds, you won’t notice a huge difference. I'm sure the hardware limitations are why Apple doesn’t bother to offer HD audio.
Sprint is still bleeding. I was very surprised to read this earlier this morning. I think this move just shows (once again) how much Sprint is grasping at cellphone straws, to try and show the investors as well as potential subscribers, that Sprint is still viable. In reality, I don't think Sprint is viable long term. I don't see them being around in 4 - 5 years, unless Sprints primary shareholder sees fit to continue funding Sprint. I am glad that I left Sprint last December.
Don't forget this also may mean regionally restricted.
They are going full circle with this!
Glassed Silver:win
I agree. Upgrading towers and improving infrastructure goes a long way in customer satisfaction.
But it telling new and existing subscribers, they'll get exclusive songs is sexier, although short-sighted.
Why don't you call a stockbroker and ask. Your analogy does not apply to stocks. They are not depreciable personal property, but representative of the capital stock of the company and prices fluctuate with supply and demand. In this case Sprint "demanded" $200m of stock for a 1/3 ownership. Since they are rational actors (owned by SoftBank) it is worth what they pay for it, whatever that is. Your argumentation notwithstanding.
You don't seem to make this same argument for the companies Apple purchases or partners with.
First, I haven't made any arguments about companies the stock value of companies that Apple has purchased, probably because it's generally moot as Apple acquires mostly privately held companies in their entirety.
Secondly, I think you're very confused about this deal. To begin with, Tidal is not a publicly traded company "where stock prices fluctuate with supply and demand." Even if it was, no sane person would believe that it was worth 600% more than when Jay Z bought it simply because Sprint paid gave them $200 million for a third share (really $275 million since they agreed to set that amount aside for artist development). It only has 3 million subscribers and is in dangerous financial shape and that's why it has been trying desperately to get Apple and others to buy it.
Finally, you have the deal backwards. Sprint didn't "demand $200 million in stock" for a third ownership. They gave Jay Z and his celeb partners $200/275 million in exchange for a third ownership. I'm sure Sprint would love it if they had $200 million dollars in stock certificates that they could sell, and I am sure that Jay Z wishes he had $600 million dollars worth of stock that he had to give out, of course, then he wouldn't need to beg companies to buy Tidal, he could just sell his share if it had increased nearly 1000% since he bought it.
It happened in HBO Silicon Valley. Erlich told so while using his bong. So it must be true.
IT MAY BE A PROMOTIONAL, NOT AN ECONOMIC DEAL, BUT FACTUALLY THE NEW VALUE HAS IN FACT BEEN ESTABLISHED BY ACTUAL CHECKWRITING.
Then you've invented a new way for folks to get infinitely wealthy. You say Tidal is now worth $600 million dollars. So, if Sprint had been really desperate to get a deal with Tidal, your saying that in exchange for their $200 million, Jay Z could have played real hard ball and have said he was only going to give them a tenth ownership instead of a third. If Sprint accepted then Tidal would be worth $2 billion dollars today instead of $600 million. And if Sprint was so desperate for access to the Tidal customers that they gave Tidal the $200 million money in return for 1/100th instead a 1/10th share, Tidal would be worth $20 billion dollars.
Yep.
Jay Z and his partners negotiated it. Not me. Maybe he will buy that $25m house for sale in LA now.