Square has announced that it is taking a majority stake in Tidal. Square expects to pay a mix of cash and stock of $297 million for a significant majority ownership stake and existing artist shareholders will be the remaining stakeholders.
A press release says that Tidal will operate in the Square ecosystem of companies alongside Cashapp and Seller. Square says that the purpose of its acquisition is to extend to a new vertical “musicians.”
“Artists are entrepreneurs with a dream and deserve access to systems, tools, and financial freedom to reach those dreams at every stage in their career,” says the press release. Square says it sees an opportunity “to help musicians find new ways to support their work and make better decisions through TIDAL.”
In addition to JAY-Z, all of TIDAL’s artist shareholders will continue to be co-owners of TIDAL after the deal closes.
Jay-Z will step onto the Square board. The deal still needs to be approved by the proper regulatory bodies, but both parties believe it will be completed by Q2 of 2021.
“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,” says JAY-Z in a 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.”
Jay-Z and Jack Dorsey (owner of Square) have been working on other projects, so this move between the two moguls doesn’t seem too far out of the park.
This news is so big that it got Jay-Z to tweet for the first time since November 2018.