Jay-Z continues to make money moves. Less than a month after selling 50 percent of his champagne company, Armand de Brignac for an undisclosed fee to LVMH. The rap mogul has reportedly sold his streaming platform, Tidal for nearly $300 million to Twitter CEO Jack Dorsey.
According to multiple reports, Jack Dorsey’s financial company Square, Inc has acquired a majority stake in Tidal, the streaming service owned by Jay-Z, Rihanna, Madonna, Daft Punk and Coldplay. Square is paying $297 million in cash and stock for a “significant majority ownership stake” and says Tidal will operate independently alongside Square’s other ventures.
Dorsey says the company’s stake in Tidal will help artists find similar support in the new digital ecosystem.
“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,” tweeted Dorsey. “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.”
Mr. Dorsey and Jay-Z began to discuss the acquisition “a few months ago,” said Jesse Dorogusker, a Square executive who will lead Tidal on an interim basis.
“It started as a conversation between the two of them,” he said. “They found that sense of common purpose.”
Jay-Z bought Tidal in partnership with other artists in 2015 for $56 million. Despite selling 33 percent of the company to Sprint in 2017, Tidal failed to attract customers in a streaming music industry dominated by the likes of Apple and Spotify.
Earlier this week, Jay-Z reportedly bought back the shares from T-Mobile, (After a merger, Sprint is now a part of T-Mobile.) and most will be sold to Square as part of the deal.