American rapper and entrepreneur Jay-Z has made a huge financial hit with the sale of most of Tidal, his music streaming service. He sells the company to Square, owned by Twitter executive Jack Dorsey. Jay-Z paid $ 56 million for Tidal in 2015, now he gets $ 297 million in cash and shares in Square in return.
Square is a company that offers financial services and mobile payment services. It is intended that the services of Square musicians can, for example, help with selling merchandise or concert tickets. That could be the third branch for Square to make money with. The company already has a payment app for consumers, Cash App, and a payment service for small business owners, Square Seller.
According to Square, Tidal continues to operate independently within the company. Shawn Carter, as Jay-Z is called, gets a seat on the Board of Square. Dorsey and Carter, who are friends, have already discussed a possible takeover.
Dorsey and Carter also recently set up a fund to make the virtual currency bitcoin the common currency for the internet. The two put together 500 bitcoin into their fund, worth about 20 million euros. The trust set up with that money is not under the control of the founders, says Dorsey. He added that he wants to set up bitcoin development teams in Africa and India.
Already been carried out, Apple talks about a potential acquisition of Tidal, a service for which well-known artists have been working as a co-owner, such as Kanye West, Alicia Keys, Calvin Harris, Coldplay, Daft Punk, Madonna, Rihanna, Usher, and Carter’s wife, Beyoncé. Tidal claims to have several million paying subscribers, but that’s still far less than the 15 million Apple has for its own music streaming service Apple Music. Competitor Spotify leads the list of 30 million paying customers.