Jack Dorsey’s Square, Inc. To Buy Majority Stake In Jay-Z’s TIDAL For $297 Million
Jay-Z has another major business deal on his hands!
Just after he reportedly made more than $300 million when he sold half of his Ace of Spades brand to LVMH’s Moët Hennessy, he’s making a major move with his music platform TIDAL.
Square, Inc. announced Thursday, March 4 that it will a majority ownership stake in Tidal for $297 million. It plans to pay in cash and stocks. Artists who are currently shareholders will continue to be stakeholders. TIDAL will still run independently in Square with Seller and Cash App.
Jack Dorsey, co-founder and CEO of Square said in a statement,
“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.”
He also released a statement on Twitter.
He shared a photo of him and Jay-Z in the planning stages.
“I said from the beginning that TIDAL was about more than just streaming music, and six years later, it has remained a platform that supports artists at every point in their careers. 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!”
Jay-Z will now have a seat on Square’s Board of Directors. He will remain a stakeholder in TIDAL as well.
TIDAL is known for being the sole music platform that is for artists and also built by artists. Its library has more than 70 million songs and 250,000 videos.
Square executive Jesse Dorogusker, who will be the interim lead of TIDAL once the deal is complete, also said in a statement:
“TIDAL sets a high standard for supporting artists, capturing music culture, and delivering the best audio quality to fans. Square has also set a high standard for building elegant, accessible, and fair tools for sellers and individuals to economically empower them. Together, TIDAL and Square will be music-obsessed and artist-focused while we explore new artist tools, listener experiences, and access to financial systems that help artists be successful.”
Square says the transaction will close in the second quarter and have no material effect on consolidated revenue or gross profit this year.
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