Square, Jack Dorsey’s financial services company, has agreed to acquire a majority stake in Jay-Z-owned music streaming service Tidal for $297m, which will be paid with a mix of cash and stock.
Square intends to use the acquisition to economically empower musicians by finding new ways to support their work, building on what the company has done for sellers over the years.
“It comes down to one simple idea: finding new ways for artists to support their work,” said Jack Dorsey, Co-founder and CEO of Square. “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.”
Under the deal – expected to close in the second quarter of 2021 – Tidal will continue to operate independently within Square, alongside the Seller and Cash App ecosystems, with Shawn ‘Jay-Z’ Carter joining Square’s Board of Directors. Furthermore, all of Tidal’s artist shareholders will continue to be co-owners of the service.
“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. “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.”