(CelebrityAccess) — Jack Dorsey’s Business startup platform Square, Inc. announced plans to acquire a majority ownership stake in the digital music streaming service TIDAL.
According to Square, the company expects to pay $297 million worth of cash and stock to acquire “a significant majority ownership stake” in TIDAL, with the platform’s existing artist shareholders remaining in place.
TIDAL board member and shareholder Shawn “JAY-Z” Carter is expected to join Square’s Board of Directors subject to the closing of the transaction.
Following the acquisition, Square says TIDAL will continue to operate independently within Square alongside other subsidiaries including the Seller and Cash App.
According to Square, they pursued TIDAL as a way into the music business with an eye on providing a business platform and services for artist entrepreneurs.
“It comes down to one simple idea: finding new ways for artists to support their work,” said Jack Dorsey, co-founder 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.”
Launched in 2014 as a spin-off of the WiMP music streaming platform, TIDAL was acquired by a consortium indirectly led by Shawn “Jay-Z” Carter in 2015 for a reported $56 million. Since then, the company has billed itself as an artist-centric streaming platform that offers high fidelity lossless music and podcasts for a monthly subscription fee.
“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 Jay-Z. “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.