Jay-Z Sells Majority Stake In Tidal Streaming Service

Jack Dorsey's digital payment company, Square is acquiring a majority ownership stake in music streaming service, Tidal. Bought by hip-hop icon, Jay -Z, in 2015 for $56 million, Tidal aimed to give music artists more control of their art and career. Recently, the music platform has struggled to compete with other music streaming services such as Spotify and Apple Music, although Square has said it doesn’t expect Tidal’s financial results to have a material impact on Square’s consolidated revenue or gross profit in 2021.

"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'" Dorsey said in a statement made on his social media app, Twitter. The deal is expected to be a mix of cash and stock totaling $297 million. Another part of the deal will find Jay-Z joining Square's board of directors, in a move to push for diversity amongst the financial company.

This news comes on the heels of Jay-Z's Ace Of Spades champagne brand being bought by luxury enterprise, LVMH. With Covid-19 seemingly disrupting how entertainers make their fortune, Jay-Z is ahead of the pack with his recent business moves.