Jack Dorsey’s Square acquires a majority of Tidal, the streaming music service owned by Jay-Z. Square will pay $297 million in stock and cash for the stake in Tidal and Jay-Z will join Square’s Board of Directors after the closing of the transaction.
The announcement comes less than two weeks after Jay-Z announced that he would sell 50 percent of his champagne company, Ace of Spades formally known as Armand de Brignac to LVMH.
Jay-Z brought Tidal in partnership with other artists in 2015 for $56 million, the app provides members access to 70 million song, 25,000 videos and exclusive content from artists, but the service has been dominated by competitors like Spotify, Apple and Amazon. In 2016 the company reported 3 million subscribers but has not disclosed updated data since. In 2017, Jay-Z sold 33 percent of the company to Sprint for an undisclosed amount. (After a merger, Sprint is now a part of T-Mobile.) According to a New York Times Earlier this week, Jay-Z bought back the shares from T-Mobile, and most will be sold to Square as part of the deal.
In a statement Jesse Dorogusker, a Square executive who will lead Tidal on an interim basis stated Square, will offer financial tools to help Tidal’s artists collect revenue and manage their finances. “There are other tools they need to be successful and that we’re going to build for them,” he said.
The celebrity co-owners such as Beyoncé, Kanye West, Rihanna, Nicki Minaj, Usher, TI, Alicia Keys and Lil Wayne are all reportedly earning $ 8.9 million from the deal.
This is only one of many more partnerships to come from the two entrepreneurs last month, Dorsey, who is also the chief executive of Twitter, announced that he and Jay-Z had endowed a Bitcoin trust to support development in India and Africa.
For more details read the official press release.