Digital payment processor Square has agreed to pay $297m in cash and stock for a majority stake in Tidal, a US-based music streaming service backed by telecommunications and internet group SoftBank.
Square will own a “significant” majority stake in the business once the transaction closes, while existing artist shareholders will remain shareholders.
Founded in 2014, Tidal operates a subscription-based music service that offers studio-level audio quality. Its catalogue consists of more than 70 million songs with a focus on exclusive content, and the service is available to consumers in more than 56 countries.
The company was bought and relaunched by rapper Shawn Carter, better known as Jay-Z, in 2015, before SoftBank’s mobile carrier subsidiary, Sprint, purchased a 33% stake two years later for a reported $200m.
Tidal will continue to operate as an independent offering post-acquisition and Carter will join Square’s board of directors. Jesse Dorogusker, hardware lead at Square, will serve as interim lead for Tidal.
Jack Dorsey, co-founder and chief executive of Square, said: “It comes down to one simple idea: finding new ways for artists to support their work.
“New ideas are found at intersections, and we believe there is 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.”
