Dorsey made it to Twitter on Thursday known that Square takes a majority stake in the music streaming service. The second largest share of the shares remains in the hands of various musicians, such as Nicki Minaj, Rihanna and Madonna.
Businessman and hip-hop artist Jay-Z, co-owner of Tidal, will serve on Square’s board. The entire deal will cost Square about $ 297 million (247 million euros), according to the New York Times.
Square is the company behind, among other things, the Cash App payment app. In addition, it facilitates the payment and salary processing of small companies.
Ecosystem of new tools
According to Dorsey, Tidal and Square are a good fit, because Tidal wants to give back the power of music streaming to artists. “Given what Square has been able to do for a wide variety of salespeople, we believe we can now realize such success for artists as well.”
Square now plans to build an “ecosystem of tools” for musicians. Dorsey mentions new listening experiences, better integration for merchandise sales, modern software for collaboration and new cash flows. “We want to make the economy work for artists.”
Jay-Z bought Tidal in 2015 along with a number of other artists for about $ 56 million. The platform has lost out to competitors such as Spotify and Apple in recent years. Jay-Z sold a third of the stock in 2017, but bought it back earlier this week.