Jay-Z Finalized Tidal Deal With Jack Dorsey For Much Higher Than We Thought

Damian Marley, Rihanna, Nicki Minaj Among TIDAL Partners Get 8.91Million Payout

Jay-Z has finally parted ways with Tidal as his 6-year majority ownership has come to an end, and the sale to the deal is finalized.

The deal was closed with Jay-Z earning $350 million from Square, a company that is owned by Twitter founder Jack Dorsey, who also owns Twitter. It’s a solid return on his investment in Tidal, which he bought the struggling company in 2015 for $56 million in partnership with other artists who contributed. Among those who contributed to Tidal’s initial purchase are Beyonce, Rihanna, Kanye West, Madonna, Alicia Keys, Calvin Harris, Chris Martin, Damian Marley and others who all had 3% equity in the company.
Square is a financial services company, Dorsey, and is now in the music streaming business. Previously Tidal struggled against competition like Spotify and Apple Music. Both Dorsey and Jay-Z are friends and have been speculated to be planning business together.
In March, Dorsey announced that he planned to buy Tidal from the rap mogul. The deal was finally closed on Friday morning.
Under the deal, Square will get 80% ownership of Tidal- which is Jay-Z’s shares, as well as the many licensing deals the company has with major record labels. There will not be any changes to the artists/owners who will remain with the company too.
Jay-Z and Roc Nation CEO Desiree Perez, who helped broker the deal, will be on Tidal’s Board of Directors to run the streaming company.
The rapper turned billionaire’s net worth is estimated to have grown by 40% with the Tidal sale. He previously recouped monies on his investment when he sold 33% of his Tidal shares to Sprint for $200 million in 2017.
Now that Tidal is in new hands, it leaves to be seen how the company will be run. When Jay-Z bought the company, it was aimed as an owned by artist company. The company paid 75% of royalties to musicians, producers, and songwriters. “Less profit for our bottom line, more money for the artist, fantastic,” he had said.

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Jay-Z Sells Majority Stake in Tidal to Twitter CEO Jack Dorsey, Square

Jay-Z might be making moves with his recent sale of Tidal to Jack Dorsey’s Square, but that also means that his silent partners are also making a nice chump change with the sale.
Jay-Z took home $297 million, but his co-owners also hit the jackpot when the sale was made. Among those who came together with HOV to buy Tidal in 2015 include his wife Beyonce, Rihanna, Damian Marley, Usher, Nicki Minaj, Kanye West, J.Cole, Alicia Keys, Daft Punk, Chris Martin (Cold Play), Calvin Harris, Deadmau5, Madonna, Jack White, Win Butler & Regine Chassagne (Arcade Fire), and Jason Aldean.

According to data from the recent sale, those who partnered with Jay-Z were “gifted 3% in equity in Tidal.” Because of that, each artist who invested will be walking away with approximately $8.91 million.
There have been mixed reactions to Jay-Z’s decision to sell TIDAL, including heavy criticisms from the rap and hip hop communities. Recently DJ Akademiks, while praising Jay-Z’s business moves, also accused the rapper turned businessman of acquiring black consumers for his companies by posing and branding it as black-owned then selling said companies to white people.
Akademiks made the stinging criticism as he assessed the Roc Nation mogul’s latest business move.

“Jay-Z bought a company, he said it was for Black creators. He said people shouldn’t support Apple and Spotify because they’re White-owned and he wanted to have something for the culture, for the artists, by the artists, and he wanted to keep it Black-owned and he wanted to do it that way. He did many B-Side concerts and sh*t like that talking about Black excellence, Black power, you should support him because he owned a Black business even though we found out later when they went to Sweden at Tidal headquarters, pretty much not one of the employees or the higher executive people at Tidal were Black.”

According to data from the recent sale, those who partnered with Jay-Z were “gifted 3% in equity in Tidal.” Because of that, each artist who invested will be walking away with approximately $8.91 million.
There have been mixed reactions to Jay-Z’s decision to sell TIDAL, including heavy criticisms from the rap and hip hop communities. Recently DJ Akademiks, while praising Jay-Z’s business moves, also accused the rapper turned businessman of acquiring black consumers for his companies by posing and branding it as black-owned then selling said companies to white people.
Akademiks made the stinging criticism as he assessed the Roc Nation mogul’s latest business move.

In spite of what critics say, it seems that the decision to sell was a sound one by Jay-Z that not only brought a great payday to Jay-Z, but he has recovered his own investment with profit. Tidal was said to have plateaued and the investment at a standstill prior to Jay-Z deciding to sell.

Nevertheless, Jay-Z has proven that his business acumen is cutting edge, and his bargaining ability is top-notch with his re-sale deals which also includes the recent sale of shares in his champagne brand Armand de Brignac to the French luxury brand LVMH. The deal will not afford many opportunities to boost the sale and distribution of luxury beverages.

“Tidal started with the idea of honouring artists by being artist-owned and led, focused on an umcompromised experience of the art,” Jack Dorsey had tweeted following the closure of the deal.

“It’s refreshing and right. The vision only grows stronger as it’s matched with more powerful tools for artists, inclusive of new ways of getting paid.”

Meanwhile, it seems that Dorsey doesn’t plan to change the purpose and functioning of the organization as he says it will continue to be a tool for artistes. “THANK YOU for your loyalty and commitment to artists and their work. TIDAL will continue to be the best home for music, musicians, and culture. Our commitment to you is to constantly listen, learn, and work to make a service you love.”

Along with a photo he shared with himself and Jay-Z sitting by a table, he says that Jay-Z will remain to lead Tidal. Still, the new agreement also means that Jay Z is also going to the integral in the functioning of Seller and Cash App- the sister companies alongside Square.

“I’m grateful for Jay’s vision, wisdom, and leadership. I knew TIDAL was something special as soon as I experienced it, and I’m inspired to work with him. He’ll now help lead our entire company, including Seller and the Cash App, as soon as the deal closes.”

It’s unclear whether Square will continue to promote and market Tidal as Black-owned for black artistes, although it seems that Dorsey said one thing’s for sure- the platform will stay true to the purpose as for artists getting the most out of their music streaming.

Music streaming has become a major stream of income for artists, especially now with the pandemic when tours are closed off, and parties are banned, streaming is the only source of income for many artists.

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Jay-Z on teaming up with Moet on his luxury champagne brand Armand de Brignac />

Jack Dorsey’s mobile payments company Square, Inc. has acquired a majority stake in Jay-Z’sTidal for $297 million in cash and stock.

According to a press release, per Complex, existing artist shareholders will be the remaining stakeholders. Tidal will operate independently within the Square framework alongside Seller and Cash App.

In a statement on Twitter, Dorsey wrote, “Square is acquiring a majority ownership stake in TIDAL through a new joint venture, with the original artists becoming the second largest group of shareholders, and JAY-Z joining the Square board.”

Jay-Z also released a statement on his Twitter page, and it’s the first post made on the account since 2018. The rapper and entrepreneur also changed his username from @S_C_ to simply @sc. 

“I said 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,” Jay said. “Artists deserve better tools to assist them in their creative journey. Jack and I have had many discussions about TIDAL’s endless possibilities that 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!”

Per Square, the acquisition of Tidal “extends Square’s purpose of economic empowerment to a new vertical: musicians. Artists are entrepreneurs with a dream and deserve access to systems, tools, and financial freedom to reach those dreams at every stage in their career. Square has helped millions of businesses start, run, and grow by providing them with tools needed for success. With Cash App, Square has made financial services more relatable and accessible to millions of customers, many of whom have been historically overlooked and underserved. Square sees an opportunity to leverage those learnings to help musicians find new ways to support their work and make better decisions through Tidal.”

Dorsey said the new deal “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’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.”

Jay-Z previously announced he sold a fifty percent ownership stake in Armand de Brignac (Ace of Spades) champagne to LVMH. 

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