Sprint’s investment in streaming music service Tidal earlier this year may not have been enough to correct course. According to Norway’s Dagens Næringsliv, the company is bleeding cash and may only have around six months of working capital remaining.
If true, Tidal could potentially run out of cash by next summer.
Sprint in January purchased a 33 percent stake in Tidal for around $200 million. Jay Z business partner Juan Perez said at the time that the investment gives Tidal sufficient working capital for the next 12 to 18 months. The acquisition, among other things, scored Sprint CEO Marcelo Claure a spot on Tidal’s Board of Directors.
When probed for comment, a Tidal spokesperson told The Verge they have experienced negative stories about Tidal since its inception and they have done nothing but grow the business each year.
This isn’t the first time Norway’s Dagens Næringsliv has been at the center of controversy involving Tidal. In January, the paper ran a story claiming Tidal had been lying to investors and the media about its subscriber numbers. It obtained internal reports showing the company’s subscriber count was around 350,000 during the same month Jay Z proclaimed on Twitter that they’d broken the one million user milestone.
Considering Jay Z himself had filed a lawsuit against Tidal’s former owners alleging exaggerated subscription numbers, the paper’s claims weren’t all that surprising.
For comparison sake, Spotify crossed the 60 million subscriber mark this past summer while Apple Music now enjoys more than 30 million subscribers.