JAY-Z Sells Majority Stake in TIDAL to Jack Dorsey's Square
The Twitter CEO will pay $297 million to gain majority ownership
Published Mar 04, 2021TIDAL — the digital streaming platform owned by JAY-Z — has been acquired by Square, the digital payment company run by Twitter CEO Jack Dorsey.
News of Square's purchase follows Bloomberg's December 2020 reporting that the companies had discussed an acquisition. A press release announcing the move notes that "Square expects to pay a mix of cash and stock of $297 million USD for a significant majority ownership stake, and existing artist shareholders will be the remaining stakeholders."
While the deal will now see JAY-Z join Square's board of directors, TIDAL's "existing artist shareholders" include Kanye West, Nicki Minaj, Madonna, Coldplay's Chris Martin, Arcade Fire's Win Butler and Régine Chassagne, Daft Punk and more, who were on hand for the service's 2015 unveiling. Details of their respective stakes following the acquisition were not made public.
Six years on from taking the reins, JAY-Z shared in a statement that TIDAL "[remains] 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!"
Dorsey added: "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."
Sharing further thoughts on Twitter, Dorsey stated, "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."