Jack Dorsey's fintech payments company Square Inc (NYSE:SQ) is in talks to acquire Jay-Z's streaming music platform Tidal, a source told Bloomberg.

What Happened: Jay-Z bought Tidal in early 2015 for $56 million and met with Dorsey to discuss a sale of his streaming music company, Bloomberg reported Thursday.

Dorsey would be interested in Tidal as a way to diversify Square.

Dorsey's vision of Square is to become a collection of multiple businesses under one corporate structure, the report said.

The company's core Square Seller and Cash App both operate independently and are managed by separate executive teams.

Why It's Important: Dorsey can likely find a way to combine Tidal with his social media company Twitter Inc (NYSE:TWTR). He also has a good amount of experience in media and entertainment, having served as a Walt Disney Co (NYSE:DIS) board member for more than four years.

Dorsey would face an uphill battle in the form of intense competition from industry titan Spotify Technology SA (NYSE:SPOT).

Related Link: Spotify Is Finally Expanding To The Home Of K-Pop

What's Next: It's unclear how Dorsey would change Tidal.

The streaming service already boasts tremendous star power, with an ownership team that includes not only Jay-Z and his wife Beyonce, but Madonna, Rihanna, Alicia Keys, Coldplay and others. 

The negotiations remain private and may not result in an acquisition, Bloomberg said. 

Photo courtesy of Square.