On Thursday, March 4, the mobile payment company Square announced that it has officially closed a $297 million deal paid in stock and cash to purchase the majority of Tidal, which is a music streaming service ran by Shawn Jay-Z Carter.
Square says that Tidal will continue to operate independently, assuring the public that nothing will change within the company itself. Jay-Z , the founder, will join the Directors board at Square, while other artists that are also stakeholders will continue to hold smaller ownership of the Tidal shares.
According to reports, the reason why Jay-Z is selling parts of Tidal to Square, is because the company is struggling to keep up with its biggwer competitors like Spotify and Apple Music. While Jack Dorsey, the CEO of Square, who is also the creator of Twitter, has said that the purpose of the deal is to extend the “economic empowerment” and support artists with “financial freedom”.
Jay-Z commented on the deal saying, “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!”.