UPDATED 6:55 p.m. ET: A Square spokesperson has told Complex the deal did take place on Friday, but that it’s for “an aggregate consideration of $302 million,” and not $350 million as previously reported. The figure “represents the purchase price for Square’s majority stake in Tidal.”
Square executive Jesse Dorogusker will serve as the interim lead for Tidal while a search for a permanent Head of Tidal is underway.
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Sources revealed to TMZ that Jay-Z has closed the deal to sell the majority of the streaming service to Jack Dorsey’s Square for $350 million.
It was previously announced in March that Hov would be selling his stake in the company to Square, but those close to the situation claim the deal was finalized on Friday, April 30.
This might be one of the biggest flips of the century. In 2015, Jigga launched Tidal for $56 million in partnership with several artists including J. Cole, Rihanna, Madonna, and more. At the time, people assumed the service would fail. But Hov loaded Tidal with exclusive content and created live events that increased the company’s value. His “defend Tidal” era sparked one of his more legendary freestyles, also:
Now, six years later, Tidal is worth six times the amount Jigga used to launch it—which takes that line from “U Don’t Know” to another level.
For the $350 million, Square will get 80 percent ownership of Tidal and licensing deals with the major record labels. All the original artists who signed on to be owners of Tidal will remain with the company and Roc Nation CEO Desiree Perez—who reportedly helped broker the deal—will be placed on the board to help run Tidal. The $350 million is for the 80 percent that remains after Hov sold 33 percent of the company to Sprint for an undisclosed amount in 2017.