Jack Dorsey’s Square acquires $297 million stake in Tidal
Financial services company, Square, is acquiring a majority stake in Tidal, the music streaming service led by American rap royalty Jay-Z, the companies announced on Thursday.
The acquisition is expected to close in the second quarter of 2021.
“It comes down to one simple idea: finding new ways for artists to support their work,” Jack Dorsey, Square co-founder and CEO, said on Twitter, “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.”
Square will pay $297 million in cash and stock for a stake in the company. The deal will allow artist stakeholders originally partnered with Jay-Z and Tidal to keep their ownership stakes.
Jay-Z will be joining Square’s board of directors, and Jesse Dorogusker, Square’s hardware lead will serve as the interim head of Tidal upon the closing of the deal.
The music streaming platform will operate independently within Square.
Jay-Z, relaunched Tidal after buying its parent company Aspiro for $56 million in 2015. The company has faced several legal battles, from suits of false advertising around exclusive releases to the $3 million dispute between the service and Kanye West, who terminated his deal with Tidal in 2017.
In 2017, Sprint invested $200 million into tidal for a 33 percent stake in the company, with Tidal being valued at $600 million.
Tidal app claims that the service is used by more than 3 million subscribers, though a report from a newspaper in Norway, Dagens Naerinsliv, accused the company of wildly inflating that number as recently as 2017.
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
Africa
Guterres demands Africa’s minerals create jobs, backs permanent UN seats
António Guterres has demanded an end to the plundering of Africa’s mineral resources, insisting the continent’s wealth must create jobs and prosperity for Africans.
Economy
Nigeria push for end of exploitation of Africa’s mineral resources at UNGA81
President Bola Tinubu has called for a fresh continental push to end the exploitation of Africa’s critical mineral resources.
Heading 4
Lawyer Ikeni Mbako-Allison suspended after being found guilty of harassing woman in UK
“Ikeni Mbako-Allison, a barrister, behaved in a way which is likely to diminish the trust and confidence which the public would place in him or in the profession,” the BSB said.
Abuja
Dangote Refinery: Abuja motorists, commuters decry delay in petrol price cuts
Motorists and commuters across Abuja have decried petrol stations’ failure to reduce petrol prices following the Dangote Refinery’s latest N25 per litre cut.
Anti-Corruption
Crown Medical Solutions, owners reach agreement with U.S. govt over fraudulent billing scheme
Crown and its owners, Michelle and Philanzo King, have agreed to pay $825,000 to resolve allegations of submitting false claims to Medicare for payment.
World
UK govt charges Vincent ‘Bajinya’ Brown with crimes linked to Rwandan genocide
The UK police, in a statement on Monday, said Mr Brown was the first to be charged in the UK over a link to the 1994 genocide against the Tutsi in Rwanda.
