Square, the digital payments company led by Twitter CEO Jack Dorsey, has acquired JAY-Z’s TIDAL streaming platform. As part of the deal, JAY-Z will move to Square’s board of directors, and Tidal’s artist owners will continue to co-own the platform, as the second largest group of shareholders.
During his high-profile acquisition of the service in 2015, from Norwegian company Aspiro, JAY-Z brought on board owner artists such as Kanye West, Nicki Minaj, Madonna, Lil Wayne, J. Cole, Chris Martin from Coldplay, Win Butler of Arcade Fire and Régine Chassagne, Rihanna, Jack White, Daft Punk and others. Their stakes in the business – and their financial benefits from the sale – have not been made public.
Last December, Bloomberg reported on the possibility of Square buying TIDAL. Today, a press release confirms that “Square plans to pay a mix of cash and stock of $ 297 million for a large controlling stake.” TIDAL will operate independently within Square, according to the press release.
JAY-Z said TIDAL remains “a platform that supports artists at every stage of their careers. Artists deserve better tools to support them in their creative journey. Jack and I had many discussions about the endless possibilities of TIDAL which made me even more inspired by its future. This shared vision makes me even more excited to join Square’s board of directors. This partnership will be a game-changer for many. I can’t wait to see what this new chapter has to offer! “
Dorsey added, “It boils down to a simple idea: finding new ways for artists to support their work. New ideas lie at the intersections, and we think there is a compelling one between music and economics. I knew TIDAL was something special as soon as I experienced it, and that it will continue to be the best home for music, musicians and culture.
The CEO of Twitter elaborated in a Twitter feed, adding, “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 for us. We’re going to start small and focus on the artists’ most critical needs and grow their fan base. “
Rad “Beyoncé and JAY-Z’s hack problem” on the ground.