Square, the co-founder of mobile payments firm Jack Dorsey, acquired a majority stake in Jay-Z’s Tidal audio and video streaming service in a $ 297 million deal.
Under the agreement, Tidal’s co-owners, which include Beyoncé, Madonna and Rihanna, will retain their interests and become the second largest shareholders. Jay-Z will join Square’s board.
This is the second deal in so many weeks for the rapper after he sold half of his Armand de Brignac champagne company, better known as Ace of Spades, to LVMH, the luxury goods company. Although the terms of the agreement were not disclosed, the brand is valued at $ 630 million by Forbes.
“Why would a music streaming business and a financial services business join forces?!,” Dorsey posted on Twitter, who posed the obvious question when he announced the news. ‘It comes down to a simple idea: to find new ways for artists to support their work. New ideas are found at the intersections, and we believe there is a compelling idea between music and the economy. ”
Square said it had taken a “substantial majority stake” in Tidal, which Jay-Z bought in partnership with other artists for $ 56 million in 2015. The service, which counts artists like Coldplay and Daft Punk as owners, has differentiated itself by offering high-quality audio and video and paying artists better than competitors like Spotify.
While Tidal has carved out its niche, delivering more than 70 million high-quality songs and 250,000 videos, Spotify, Apple Music and Amazon Music dominate. Last month, Spotify announced its own high-resolution streaming option, which will compete against Tidal. In 2017, Jay-Z removed most of his music from Spotify, but restored it in 2019 for his 50th birthday.
Founded in 2009, Square offers financial instruments for small businesses that will help artists explore options such as receiving digital payments directly from fans. “There are tools they need to be successful, and what we’re going to build for them,” said Square CEO Jesse Dorogusker, who will run Tidal.