Square Inc acquires majority of Tidal in USD 297 million deal.
Square Inc has agreed to buy a majority stake in Tidal, the streaming music service led by rapper Jay-Z, as part of an effort to expand the company’s support to musicians and emerging artists.
Square will pay USD 297 million in a mix of cash and stock to become Tidal’s majority owner. Tidal will operate independently within Square, according to a company release and Jay-Z will join its Board of Directors.
Jay-Z acquired Tidal for USD 56 million in 2015 and announced plans to turn it into the first artist-owned streaming service. The rapper recruited more than a dozen of the biggest artists in the world, including Rihanna, Kanye West and Calvin Harris, as co-owners.
Tidal has struggled to keep up with competing services from Spotify and Apple which have far larger customer bases.