Square, a digital payment firm run by Jack Dorsey, CEO of Twitter, has acquired Tidal, the audio and video music steaming platform owned by Jay-Z, in a deal worth $297 million.
Both parties confirmed the acquisition in a statement via their respective Twitter handles on Thursday.
As part of the deal, Jay-Z will move to Square’s board of directors and Tidal’s artist owners will co-own the platform as the second largest group of shareholders.
“It comes down to a simple idea: finding new ways for artists to support their work. New ideas are found at the intersections, and we believe there’s a compelling one between music and the economy,” Dorsey said.
“TIDAL will continue to be the best home for music, musicians, and culture. Our commitment to you is to constantly listen, learn, and work to make a service you love.
“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.”
Speaking of the deal, Jay-Z added: “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. This partnership will be a game-changer for many. I look forward to all this new chapter has to offer!”
Launched in 2015, Tidal has an all-star cast of stakeholders including Kanye West, Rihanna, Arcade Fire, Daft Punk, Madonna, Jack White, Chris Martin, Alicia Keys, Jason Aldean, among others.
The development comes a few days after the US rapper sold a 50% stake in Armand de Brignac, his champagne brand, to LVMH Moët Hennessy, a luxury beverage giant.