Square has signed a deal with Jay-Z to take control of Jewel in an attempt to rejuvenate the struggling music streamer.
The Jack Dorsey-led financial services firm will pay $ 297 million in cash and stock for a “significant majority ownership stake” in the tide, which the Brooklyn-born rapper acquired in 2015 for $ 56 million.
Jay-Z will also join Square’s board of directors as soon as the deal closes in the second quarter of this year. Company said Thursday
Dorsey and Jay-Z announced after dropping several signs that they were cooking something. This pair was spotted Sitting on a yacht in the Hamptons They were discussing a square-tidal tie-up with Jay-Z’s superstar wife Beyoncé in August before the news leaked in December.
“Jack is one of the greatest minds of our time, and our many discussions about the endless possibilities of TIDAL have inspired me even more about his future,” Jay-Z said As his new partner on Twitter, Joe Dorsey also leads as CEO.
But Square’s investors showed disarray – the company’s stock price plummeted 1.7 percent to $ 231.21 soon after the bell rang early Thursday.
Dorsey argues that Square can help Tidal fulfill its mission of supporting artists behind more than 70 million songs available to stream on its platform, competing with big rivals such as Spotify and Apple Music struggling to.
The Cash App owner plans to help fellow musicians increase their business and bigotry by creating collaboration tools that make it easier to sell merchandise and create “completely new listening experiences”. Dorsey said.
“Given what Square Cash is able to do for sellers of all sizes and individuals through the app, we believe we can now work to see artists succeed for them and us alike,” he said .
The deal looks like a coup for Jay-Z, who were searching for buyers for the title in early 2017, as The Post previously reported. The service has been dragged down by weak subscriber numbers – a tally between 1 and 5 million compared to Spotify’s 345 million active users – and higher turnover in its executive suite.
Jay-Z, born Sean Carter, would hold a Tidal stake as part of a group of artist-owners who would constitute the service’s second-largest shareholder, according to Dorsey. The group also includes stars such as Rihanna, Madonna and Alicia Keys.