American rapper Jay-Z has reportedly completed the sale of his majority stake in music streaming platform TIDAL to Square, Inc.
On 4 May, Complex reported that the US$302 million deal, described as an "aggregate consideration", had been finalised on 30 April (Eastern Time).
The news comes two months after Square, Inc., a mobile payment company and merchant services aggregator, announced its plans to buy a majority ownership stake in TIDAL.
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?!— jack (@jack) March 4, 2021
Square, Inc.'s co-founder Jack Dorsey, who is also the co-founder and CEO of Twitter, explained the reason for the acquisition in a series of tweets following the announcement.
"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. Making the economy work for artists is similar to what Square has done for sellers." wrote Dorsey.
Dorsey also said Jay-Z would join the Square, Inc. board following the move.
In the wake of the acquisition, Square, Inc. executive Jesse Dorogusker will assume the role of interim lead at TIDAL until a new Head of TIDAL is appointed.
First launched by Norwegian company Aspiro in 2014, TIDAL was eventually acquired by Jay-Z following his purchase of Aspiro under Project Panther Bidco Ltd in 2015. Other artists who have owned stakes in the music streaming platform include Beyoncé, Rihanna, Madonna, Nicki Minaj, and Alicia Keys.