Square, the cellular funds firm owned by Jack Dorsey, introduced on Thursday its plan to amass a “significant majority” of Tidal, the streaming music service owned by Hip-hop music mogul, Jay-Z.
Square stated it expects to pay $297 million, in a mixture of money and inventory, for a stake in Tidal. Shawn “Jay-Z” Carter will be a part of Square’s board, topic to the closing of the transaction whereas Tidal will function independently inside Square.
Existing artist shareholders will nonetheless stay stakeholders. Other Tidal artist-owners embrace Beyoncé, Alicia Keys, Coldplay’s Chris Martin, Kanye West, Madonna, Nicki Minaj, and Rihanna.
In a tweet made by Jay-Z immediately, he highlighted that “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.”
He additionally commented that “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.
“This partnership will be a game-changer for many. I look forward to all this new chapter has to offer!”
Jack Dorsey, who’s CEO of each Square and Twitter, additionally commented on this deal “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.”
Jesse Dorogusker, a Square government will lead Tidal on an interim foundation. He added that Square will provide monetary instruments to assist Tidal’s artists accumulate income and handle their funds. “There are other tools they need to be successful and that we’re going to build for them,”.
What it’s best to know
- Last month, Jack Dorsey and Jay-Z introduced a Bitcoin fund targeted on growing the cryptocurrency’s adoption in Africa and India.
- In 2017, Sprint purchased a 33% stake in Tidal. This week, Jay-Z purchased again these shares from T-Mobile (which acquired Sprint).
- Last month, Jay-Z introduced that he would promote 50 p.c of his champagne firm, Armand de Brignac — higher generally known as Ace of Spades — to LVMH Moët Hennessy Louis Vuitton amid a downturn within the leisure business attributable to the pandemic that has affected a few of Jay-Z’s holdings.