Jay-Z is selling his shares in Tidal to Twitter CEO Jack Dorsey’s digital payment company Square. Since Jay-Z was the majority owner of the streaming platform, this deal marks an acquisition of the service.
In return, Jay-Z will join Square’s board of directors and Square “expects to pay a mix of cash and stock of $297 million for a significant majority ownership stake,” according to a press release. The statement adds that Tidal will operate independently inside the new parent company.
When Jay-Z acquired Tidal in 2015 from Aspiro, the Norwegian company that developed it, he sold shares in the company to some wealthy musicians including Win Butler and Régine Chassagne of Arcade Fire, J. Cole, Daft Punk, Madonna, Coldplay frontman Chris Martin, Nicki Minaj, Rihanna, Lil Wayne, Kanye West, Jack White and others. These artist owners still own their stakes, and as a group hold the second-largest amount of shares in the platform. Telecommunications company Sprint at least used to have a large stake in the company after buying 33 percent of Tidal in 2017. It’s unconfirmed how many shares they currently own.
Jay-Z commented on the acquisition via press release, calling Tidal “a platform that supports artists at every point in their careers.” He continues, “Artists deserve better tools to assist them in their creative journey. Jack and I have had many discussions about TIDAL’s endless possibilities that have made me even more inspired about its future. This shared vision makes me even more excited to join the Square board. This partnership will be a game-changer for many. I look forward to all this new chapter has to offer!”
Dorsey likewise expressed his passion for supporting artists, “It comes down to one simple idea: finding new ways for artists to support their work. New ideas are found at intersections, and we believe there’s a compelling one between music and the economy. I knew TIDAL was something special as soon as I experienced it, and it will continue to be the best home for music, musicians, and culture.”
Via Twitter, Dorsey continued, “Given what Square has been able to do for sellers of all sizes and individuals through Cash App, we believe we can now work for artists to see the same success for them, and us. We’re going to start small and focus on the most critical needs of artists and growing their fanbases.”
Photo credit: Sharon Alagna
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