Celebrity News

Jay-Z sells music app Tidal for $ 300 million

American rapper and entrepreneur Jay-Z (51) has made a big financial hit with the sale of most of Tidal, his music streaming service. He sells the company to Square, owned by Twitter CEO Jack Dorsey (44).

Jay-Z deposited $ 56 million for Tidal in 2015, now he’s getting $ 297 million in cash and shares in Square in return, the latter company reports . 

Third branch for Square

Square is a company that provides financial services and mobile payment services. Square’s services are intended to help musicians, for example, sell merchandise or concert tickets.

That way, Tidal should become the third branch for Square to earn. The company already has a consumer payment app, Cash App, and a small business payment service, Square Seller.

Tidal will continue to operate independently within the company, according to Square. Shawn Carter, as Jay-Z is called, gets a place on Square’s board. Dorsey and Carter, who are friends, have previously held talks about a possible takeover.

Dorsey and Carter also recently set up a fund with the aim of making cryptocurrency bitcoin the common means of payment for the internet. The two put together 500 bitcoin in their fund, good for about 20 million euros. The trust set up with that money will not be under the control of the founders, Dorsey said. He added that he plans to set up bitcoin development teams in Africa and India.

Apple previously held talks for a possible takeover of Tidal. Well-known artists as co-owners have joined this service, such as Kanye West, Alicia Keys, Calvin Harris, Coldplay, Daft Punk, Madonna, Rihanna, Usher and Carter’s wife BeyoncĂ©. These artists will also receive shares in Square. 

Smaller than Apple and Spotify

Tidal says it has several million paying subscribers, but that is still much less than the 15 million that Apple has for its own music streaming service Apple Music. Competitor Spotify tops the list with 30 million paying customers.