Square purchase majority stake in Jay-Z’s Tidal music service for $297 million

(ATLANTA, GA) Exclusive: FCNTV Is reporting that the financial services company Square Inc (SQ), founded and run by Twitter CEO Jack Dorsey, announced Thursday it has agreed to acquire a majority stake in Jay–Z’s Tidal platform. In a press release, Square said it expects to pay $297 million in cash and stock for the stake. As part of the deal, Jay–Z will join Square’s board.

Asking the obvious question in a thread on Twitter, Dorsey said: “Why would a music streaming company and a financial services company join forces?!” His answer: to find “new ways for artists to support their work.” Just as Square gave sellers new tools to make money, Dorsey says the company’s stake in Tidal will help artists find similar support in the new digital ecosystem.

“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,” tweeted Dorsey. “Square created ecosystems of tools for sellers & individuals, and we’ll do the same for artists. We’ll work on entirely new listening experiences to bring fans closer together, simple integrations for merch sales, modern collaboration tools, and new complementary revenue streams.”

Tidal was founded in Norway in 2014 before being bought by a consortium of artists led by Jay-Z the following year for $56 million. Artist-owners included Coldplay, Rihanna, Daft Punk, and Madonna. The new owners positioned Tidal in opposition to big tech’s streaming services, promising fans high-quality audio and exclusive content.

As part of the deal, Jay-Z will join Square’s board of directors. “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,” said Jay-Z in a press statement.

“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.” Nevertheless this deal seems to make much sense for both parties, we’re looking forward to what may come of this super hugh business acquisition.