Square, Inc. founded by Twitter CEO Jack Dorsey, is buying a majority stake in Tidal, the audio and video streaming service led by Jay-Z. Square is paying $297 million in cash and stock for a “significant majority ownership stake” and says Tidal will operate independently alongside Square’s other ventures.
via: Uproxx
A couple months ago, there were reports that Square, the mobile payments company of which Twitter co-founder/CEO Jack Dorsey is also founder/CEO, was in talks with Jay-Z’s streaming service Tidal to buy the platform. It turns out those were more than just rumors, as both Dorsey and Jay have confirmed that the deal is just about finalized.
The New York Times reports that Square will acquire a “significant majority” of Tidal for $297 million in stock and cash. The publication also notes that earlier this week, Jay-Z bought back 33 percent of Tidal from T-Mobile after selling those shares to Sprint (which has since become part of T-Mobile) in 2017. Most of those shares will be sold to Square as part of the new deal.
Dorsey shared a lengthy series of tweets about the deal this morning, which began, “Square is acquiring a majority ownership stake in TIDAL through a new joint venture, with the original artists becoming the second largest group of shareholders, and JAY-Z joining the Square board. Why would a music streaming company and a financial services company join forces?! It comes down to a simple idea: finding new ways for artists to support their work. New ideas are found at the intersections, and we believe there’s a compelling one between music and the economy.”
Jay-Z also shared a message about the deal on Twitter, writing, “This partnership will be a game-changer for many. I look forward to all this new chapter has to offer! 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. 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. Artists deserve better tools to assist them in their creative journey.”
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
This partnership will be a game-changer for many. I look forward to all this new chapter has to offer!
— Mr. Carter (@sc) March 4, 2021
It comes down to a simple idea: finding new ways for artists to support their work. New ideas are found at the intersections, and we believe there’s a compelling one between music and the economy. Making the economy work for artists is similar to what Square has done for sellers.
— jack (@jack) March 4, 2021
TIDAL started with the idea of honoring artists by being artist-owned and led, focused on an uncompromised experience of the art. It's refreshing and right. The vision only grows stronger as it’s matched with more powerful tools for artists, inclusive of new ways of getting paid.
— jack (@jack) March 4, 2021
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.
— jack (@jack) March 4, 2021
To all of TIDAL's current listeners and fans: THANK YOU for your loyalty and commitment to artists and their work. TIDAL will continue to be the best home for music, musicians, and culture. Our commitment to you is to constantly listen, learn, and work to make a service you love.
— jack (@jack) March 4, 2021
More from us soon. In the meantime, here’s a playlist from Jay/@sc celebrating artists and the entrepreneurial spirit: https://t.co/qg9av9Bmzt
— jack (@jack) March 4, 2021
It will be interesting to see where Tidal goes under Dorsey’s leadership, could it possibly be integrated into twitter.
