JAY-Z is selling a majority stake in his TIDAL streaming service to Square, the mobile payment company owned by Twitter co-founder Jack Dorsey. Hov made the major announcement on Thursday morning (March 4) in a series of tweets — his first appearance on the social media platform in over two years.
“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. Artists deserve better tools to assist them in their creative journey,” the billionaire rapper tweeted.
Per the agreement, JAY will remain on TIDAL’s board and also join Square’s Board of Directors. A press statement notes that TIDAL will operate independently within the Square framework alongside the company’s affiliated brands Cash App and Seller.
“Jack is one of the greatest minds of our times, and our many discussions about TIDAL’s endless possibilities have made me even more inspired about its future,” Hov continued. “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!”
In his own tweets, Dorsey wrote, “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.”
Dorsey added that JAY will “now help lead our entire company, including Seller and the Cash App, as soon as the deal closes.”
“I’m grateful for JAY’s vision, wisdom and leadership… and I’m inspired to work with him,” he wrote.
Square will reportedly pay a mixture of cash and stock of $297 million to JAY for the majority stake. Existing artist shareholders will make up the company’s remaining stakeholders. The deal is expected to be completed in the second quarter of this year.
The major announcement is the second mega-sale JAY has made this year. Last week, REVOLT reported that the 21-time Grammy Award winner sold a 50 percent stake in his Ace of Spades champagne company to luxury conglomerate LVMH. Hov is estimated to have walked away from that deal with at least $315 million.
See JAY and Dorsey’s tweets below.