Square, the mobile payments firm run by Jack Dorsey (Twitter’s co-founder) has acquired a majority stake in Jay-Z’s Tidal audio and video music streaming service in a $297m deal. As part of the deal, JAY-Z will move to Square’s board of directors.
“This partnership will be a game-changer for many. I look forward to all this new chapter has to offer,” Jay-Z wrote on Twitter.
Jack is one of the greatest minds of our times, and our many discussions about TIDAL’s endless possibilities have made me even more inspired about its future. This shared vision makes me even more excited to join the Square board.
— Mr. Carter (@sc) March 4, 2021
Square expects to pay a mix of cash and stock of $297 million for a ‘significant majority’ ownership stake. Also, the existing artist-owners will continue to co-own the platform, as the second largest group of shareholders. TIDAL will still operate independently within Square, alongside the Seller and Cash App ecosystems. The completion of the transaction will be subject to standard regulatory approvals and is expected to close in Q2 2021.
I’m grateful for Jay’s vision, wisdom, and leadership. I knew TIDAL was something special as soon as I experienced it, and I’m inspired to work with him. He’ll now help lead our entire company, including Seller and the Cash App, as soon as the deal closes. https://t.co/YRfYjcWJQx pic.twitter.com/xBtq2xfwue
— jack (@jack) March 4, 2021
TIDAL was launched in 2010 across Scandinavia under its original name of WimP, offering both a standard and hi-def audio package. The platform’s former parent company Aspiro changed WimP’s name to TIDAL in March 2015 ahead of is acquisition by Project Panther Bidco, led by Jay Z. Hov bought the company for $56m in 2015, in partnership with 16 of the biggest artists in the world. In addition to Jay Z, the company’s owners includes Kanye West, Rihanna, Nicki Minaj, Lil Wayne, Madonna, Daft Punk and more.
It is the second deal in as many weeks for Jay-Z, after he sold half of his Armand de Brignac champagne company, better known as Ace of Spades, to LVMH, the luxury goods company.