Twitter CEO, Jack Dorsey is set to take over rapper Jay-Z’s music streaming platform Tidal via Square, his payment platform in a landmark takeover deal.
According to details of the deal, Square is set to pay $297 million in stock and cash for a majority stake in the music streaming app while Jay-Z and other existing shareholders will retain some form of ownership of the company.
Tidal was acquired by Jay-Z in 2015 for $56 million but the company has continually failed to meet up with the numbers and compete with other industry giants like Spotify and Apple.
Speaking on the proposed take-over, the rapper turned serial entrepreneur tweeted this Thursday saying that, “from the beginning that TIDAL was about more than just streaming music, and six years later, it has remained a platform that supports artists at every point in their careers. Artists deserve better tools to assist them in their creative journey.”
Tweeting further he said of the Twitter and Square CEO, “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. This shared vision makes me even more excited to join the Square board.
“This partnership will be a game-changer for many. I look forward to all this new chapter has to offer!”
Speaking on the deal in a statement, Jack Dorsey said, ”Given what Square has been able to do for sellers of all sizes … we believe we can now work for artists to see the same success for them, and us,”
“New ideas are found at intersections, and we believe there’s 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.”
Jack Dorsey and Jay-Z have apparently both been doing a lot of talking. The duo earlier last month had announced a Bitcoin fund focused on developing the adoption and proliferation of cryptocurrency in Africa and India.
Jay-Z will be joining Square’s board and will still retain some form of ownership of the company after the deal is closed.
$297 million is up for grabs for the rapper turned serial entrepreneur.
Jay-Z’s estimated worth is put at $1 billion.
50% of his stake in Armand de Brignac is put at $630 million.