Jay-Z finalizes deal to sell Tidal majority ownership for $302M
The rapper originally launched Tidal for $56M
Mr. Carter is making one of his biggest money moves yet. According to recent reports, Jay-Z has finalized his deal to sell his majority share of Tidal ownership for $302M.
As theGrio previously reported, Square, Inc. announced in March that they reached an agreement with Jay-Z’s popular Tidal streaming service to acquire majority ownership. At the time of the deal, Square was set to pay “$297 million in cash and stock for Tidal,” with Jay-Z to be named “to Square’s board of directors.”
Now, per recent reports, Jay-Z has finalized the lucrative deal, which is reportedly “an aggregate consideration of $302M.”
According to Complex, the $302M figure, “represents the purchase price for Square’s majority stake in Tidal.”
As the deal is finalized, Square executive Jesse Dorogusker is said to take over as interim lead for Tidal while the search continues for someone to permanently head the company.
The deal is an impressive one considering the history of Tidal, which Jay-Z bought for $56M in 2015 with a star-studded launch, including Alicia Keys, Rihanna, Madonna, Usher, Coldplay, and more, promising that artists would share in ownership. The late icon Prince, who was famous for refusing to allow his music on streaming services due to the low pay rates, allowed Tidal to stream his music first because of Jay-Z’s ownership.
The rapper is now selling it for six times the amount it was worth just six years ago.
At the time of the deal announcement, Jack Dorsey, CEO of Square and also co-founder and chief executive of Twitter, wrote a tweet thread breaking down the thought process behind the massive deal.
He shared with his followers, “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 comes down to a simple idea: finding new ways for artists to support their work,” he continued. “New ideas are found at the intersections, and we believe there’s a compelling one between music and the economy. Making the economy work for artists is similar to what Square has done for sellers.”
Speaking of the rapper himself and his role in Square at large moving forward, Dorsey wrote, “I’m grateful for Jay’s vision, wisdom, and leadership. I knew TIDAL was something special as soon as I experienced it, and I’m inspired to work with him. He’ll now help lead our entire company, including Seller and the Cash App, as soon as the deal closes.”
Jay-Z himself took to Twitter at the time of the deal announcement to share his thoughts on his decision with his many fans.
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…Jack is one of the greatest minds of our times, and our many discussions about TIDAL’s endless possibilities have made me even more inspired about its future. This shared vision makes me even more excited to join the Square board.”
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