Financial services company, Square is acquiring a majority stake in Tidal. The Jack Dorsey-owned company is paying $297 million in cash and stock for the high-fidelity audio and video streaming service led by Jay-Z.
The amount is for a “significant majority ownership stake” with Square also saying that Tidal will operate independently alongside its other ventures.
In a Twitter thread explaining the acquisition, Dorsey said; “Why would a music streaming company and a financial services company join forces?! ”
To which he responds; to find “new ways for artists to support their work”. Dorsey says the company’s stake in Tidal will help artists find support in the new digital ecosystem. He also likened it to how Square gave sellers new tools to make money.
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?!
— jack (@jack) March 4, 2021
Also read:
– Spotify Now Allows Users Sort ‘Liked Songs’ By Mood Or Genre
– WhatsApp Desktop App Now Supports Video And Voice Calls
– Japanese Billionaire Yusaku Maezawa Wants You To Come To Space With Him
“Given what Square has been able to do for sellers of all sizes and individuals through Cash App, we believe we can now work for artists to see the same success for them, and us. 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,” Dorsey tweeted.
Jay-Z led a group of artists to acquire the service for $56 million in 2015. The other artist-owners include Coldplay, Rihanna, Daft Punk, and Madonna.
The deal will also see Jay-Z join Square’s board of directors. “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!” he said in a statement.
For your daily dose of tech, lifestyle, and trending content, make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can also email us at info@plat4om.com and join our channel on Telegram at Plat4om. Finally, don’t forget to subscribe to our YouTube channel HERE.