Jack Dorsey's digital-payments processor Square is buying Tidal, Jay-Z's music streaming platform, for nearly $300 million, the companies announced Thursday.
The move is set to bring Jay-Z to Square's board of directors.
Square said it was buying a majority stake in Tidal for $297 million through a mix of cash and stock.
Dorsey said Square would work with artists to grow their fanbases through simple integrations for merchandise sales, new listening experiences, and "complementary revenue streams."
The Twitter executive thanked Jay-Z for his leadership and vision for TIDAL, and added he will help lead Square and Cash App and Seller by working on Square's board.
"TIDAL started with the idea of honoring artists by being artist-owned and led, focused on an uncompromised experience of the art. It's refreshing and right," Dorsey said in a tweet. "The vision only grows stronger as it's matched with more powerful tools for artists, inclusive of new ways of getting paid."
Jay-Z bought Tidal in 2015 for $56 million and proceeded to debut exclusive releases on the platform, such as Beyonce's "Lemonade" album in 2016. But the platform has struggled to keep up with players like Spotify, Insider's Kate Canales reported.
"Based on current information, Square does not expect TIDAL's financial results to have a material impact on Square's consolidated revenue or gross profit in 2021," the company said in a press release.
—jack (@jack) March 4, 2021
Dorsey had reportedly been in talks to buy TIDAL in December. Dorsey and Jay-Z had previously partnered to start a bitcoin endowment, which would develop the cryptocurrency in India and Africa.
"Jack is one of the greatest minds of our times, and our many discussions about TIDAL's endless possibilities have made me even more inspired about its future," Jay-Z said in a tweet Thursday morning. "This shared vision makes me even more excited to join the Square board."
Dorsey, who is also the CEO and co-founder of Twitter, set up Square in 2009. The fintech provides point-of-sale payment options to small and medium-sized businesses, and this week set up its highly anticipated industrial bank.
TIDAL's platform has 70 million songs and 250,000 videos, along with original podcasts and curated playlists, per a release.
