Square has bought a majority stake in TIDAL, the music streaming service built and co-owned by artists.
Square is one of the leading mobile payment companies, making it easy for small businesses to handle sales and transactions. The goal of the deal, valued at $297 million, is to open up new avenues of business, centered around meeting the needs of artists.
“It comes down to one simple idea: finding new ways for artists to support their work,” said Jack Dorsey, cofounder and CEO of Square. “New ideas are found at intersections, and we believe there’s a compelling one between music and the economy. I knew TIDAL was something special as soon as I experienced it, and it will continue to be the best home for music, musicians, and culture.”
“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,” said Shawn “JAY-Z” Carter. “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!”
Much like the Seller and Cash App ecosystems, TIDAL will operate independently within Square. In addition to Jay-Z joining Square’s board, all of Tidal’s shareholders will remain co-owners of the streaming service after the deal is closed, likely in the second quarter of 2021.