The Jack Dorsey-led financial services firm will pay $297 million in cash and stock for a “significant majority ownership stake” in Tidal, which the Brooklyn-born rapper acquired for $56 million in 2015. Square has reached a deal with Jay-Z to take control of Tidal in an attempt to rejuvenate the struggling music streamer. Jay-Z returns to Spotify on his 50th birthday Rapper Jay Electronica releases debut album ‘A Written Testimony’ Square reportedly interested in buying Tidal from Jay-Z Square’s stock dropped a further 3% in after-hours trading.‘C-Note’ leases – north of $100 per square foot – are enriching Manhattan Square’s share price dropped 6.7% in regular trading, to $218.41. Investors were not pleased with the news of the acquisition. As CNBC wrote, people are buying NFTs these days out of the belief that they’ll be able to prove ownership of a virtual item thanks to blockchain. Known more commonly as NFTs, the tokens operate on the Ethereum blockchain and offer a collector’s item that can’t be duplicated. Recode suggested that the deal may be focused around things such as Square selling T-shirts for musicians on tour but noted that the two companies could also work on non-fungible tokens. 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.” “New ideas are found at intersections and we believe there’s a compelling one between music and the economy. “It comes down to one simple idea: finding new ways for artists to support their work,” said Dorsey said in a statement. Officially the acquisition is being pitched as extending “Square’s purpose of economic empowerment to a new vertical: musicians.” The obvious question is why would a payment service such as Square, run by Jack Dorsey, who is also the chief executive of Twitter Inc., want to buy a less-than-successful music streaming service for an arguably high price. Obtaining a hard number for the company is difficult as well as of 2019, it was lumped in the 14% of music streaming companies regarded as “others” in data provided by Statista.Ī report in 2016 claimed that Apple was holding talks to acquire Tidal, but nothing further came of those talks. In offering no free version and only relatively high-priced subscription options, Tidal has struggled to find users.Ī month after launching in 2015, the service was described as sinking like a brick and though it carved out a niche audience, it has never achieved a significant market share. It competes directly with Spotify Technology SA, Apple Inc. Under the terms of the deal, previous majority owner Jay-Z is joining Square’s board, while other famous music artists that currently own minority shares in the company will remain as shareholders.įounded in 2014 and acquired by Jay-Z for $56 million in March 2015, the service differentiates itself by offering high-fidelity music streaming for $20 a month, as well as a lower-quality stream for $10 a month. The exact size of the stake, made with a combination of cash and stock, was not disclosed. today revealed it has purchased a majority stake in Aspiro AB, the owner of the Tidal music streaming service, for $297 million.
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