Jay-Z’s Norwegian subscription-based music, podcast and video streaming service Tidal has finally found a buyer: Square announced today that it has entered into a definitive agreement to acquire a majority ownership stake in the service. Square expects to pay a mix of cash and stock of $297 million for a significant majority ownership stake, and existing artist shareholders will be the remaining stakeholders. Tidal will operate independently within Square, alongside the Seller and Cash App ecosystems.
“It comes down to one simple idea: finding new ways for artists to support their work,” said Jack Dorsey, cofounder and CEO of Square, in a statement. “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, in a statement. “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!”
Tidal more than 70 million songs and 250,000 videos. It costs US$9.99 per month.
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. In addition to JAY-Z, all of TIDAL’s artist shareholders will continue to be co-owners of TIDAL after the deal closes.
Based on current information, Square does not expect Tidal’s financial results to have a material impact on Square’s consolidated revenue or gross profit in 2021. The completion of this transaction is subject to customary closing conditions including regulatory approvals. The parties expect to close the transaction in the second quarter of 2021.
MacDailyNews Take: Jay-Z’s music streaming service Tidal has finally found a sucker, is more like it.
Square shouldn’t expect Tidal’s financial results to have a material impact on Square’s consolidated revenue or gross profit ever. 😏