It was announced on Thursday (March 4) that Square, the mobile payments company founded by Twitter’s Jack Dorsey, is acquiring a majority stake in Jay-Z’s Tidal.
Dorsey tweeted on Thursday, “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 was revealed that the deal includes a mix of cash and stock of $297 million for a significant majority ownership stake. The deal will also see Jay-Z joining Square’s Board of Directors. Jay-Z addressed the deal in a series of tweets.
He wrote, “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 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!”
The news comes after LVMH’s Moët Hennessy announced a partnership with Jay-Z via a 50% acquisition of his Armand de Brignac champagne brand last month. Forbes recently estimated that the deal is worth an estimated $315 million.
Source: New York Times