Jay-Z Closes Deal To Sell Tidal To Twitter Founder Jack Dorsey
The sale of Jay-Z’s majority stake in music-streaming service Tidal to Jack Dorsey’s Square has closed, with Tidal being valued at north of AU$560 million.
Square, Dorsey’s financial services company, paid AU$451 million for 80 per cent of Tidal, with Square’s executive Jesse Dorogusker taking the interim head role while the company searches for a permanent replacement.
Jay-Z’s own continued involvement in the streaming service remains to be seen, however Desiree Perez, CEO of Jay-Z’s entertainment company Roc Nation, will carry on with Tidal.
The half-billion valuation of the company — a streaming service with less than five million subscribers worldwide (and rumoured to be closer to a million) that no longer has its marquee star and the exclusivity deals he could command from artists such as Kanye West, and his wife Beyonce Knowles — may have been hasty.
Square is acquiring a majority ownership stake in TIDAL through a new joint venture, with the original artists becoming the second largest group of shareholders, and JAY-Z joining the Square board. Why would a music streaming company and a financial services company join forces?!
— jack (@jack) March 4, 2021
A string of tweets from Dorsey in March, suggested that Jay-Z would continue on at the company. “I’m grateful for Jay’s vision, wisdom, and leadership,” he wrote.
“I knew TIDAL was something special as soon as I experienced it, and I’m inspired to work with him. He’ll now help lead our entire company, including Seller and the Cash App, as soon as the deal closes.”
It remains to be seen whether such heavy Jay-Z involvement was part of the deal.