March 5, 2021
Square, the mobile payments company founded by Dorsey (who also is CEO of Twitter) announced on March 4 that it would acquire a “significant majority” of Tidal, the streaming music service owned by Jay-Z and other artists—including Jay-Z’s wife, Beyoncé, , and singer and entrepreneur Rihanna, who is a client of Jay-Z’s entertainment management company, Roc Nation.
The announcement comes less than two weeks after Jay-Z announced that he would sell 50% of his champagne company, Armand de Brignac—better known as Ace of Spades—to LVMH Moët Hennessy Louis Vuitton amid a downturn in the entertainment industry caused by the pandemic that has affected some of Jay-Z’s holdings.
“I think Roc Nation will be fine,” Jay-Z said in an interview last month about the sale of Armand de Brignac. “Like all entertainment companies, it will eventually recover. You just have to be smart and prudent at a time like this.”
Also last month, Dorsey announced that he and Jay-Z had endowed a Bitcoin trust to support development in India and Africa.
Tidal, which Jay-Z bought in partnership with other artists in 2015 for $56 million, provides members access to music, music videos and exclusive content from artists—but the streaming music industry has been dominated by competitors like Spotify, Apple and Amazon.
In 2017, Jay-Z sold 33% of the company to Sprint for an undisclosed amount. (After a merger, Sprint is now a part of T-Mobile.) Earlier this week, Jay-Z bought back the shares from T-Mobile, and most will be sold to Square as part of the deal.
Dorsey and Jay-Z began to discuss the acquisition “a few months ago,” Jesse Dorogusker, a Square executive who will lead Tidal on an interim basis, told the Times.
“It started as a conversation between the two of them,” he said. “They found that sense of common purpose.”
Research contact: @nytimes