What did Jay-Z and Jack Dorsey discuss once they went yachting across the Hamptons collectively final summer time? Maybe solely Beyoncé is aware of.
Perhaps now we do, too. Sq., the cellular funds firm led by Mr. Dorsey, introduced on Thursday its plan to amass a “vital majority” of Tidal, the streaming music service owned by Jay-Z and different artists — together with Beyoncé, Jay-Z’s spouse, and Rihanna, who’s a consumer of Jay-Z’s leisure administration firm, Roc Nation.
Sq. can pay $297 million in inventory and money for the stake in Tidal. Jay-Z will be a part of Sq.’s board.
The announcement comes lower than two weeks after Jay-Z introduced that he would promote 50 p.c of his champagne company, Armand de Brignac — higher often known as Ace of Spades — to LVMH Moët Hennessy Louis Vuitton amid a downturn within the leisure trade attributable to the pandemic that has affected a few of Jay-Z’s holdings.
“I feel Roc Nation can be fantastic,” Jay-Z mentioned in an interview final month concerning the sale of Armand de Brignac. “Like all leisure corporations, it is going to ultimately get well. You simply must be good and prudent at a time like this.”
Additionally final month, Mr. Dorsey, who can also be the chief government of Twitter, announced that he and Jay-Z had endowed a Bitcoin belief to assist improvement in India and Africa.
Tidal, which Jay-Z bought in partnership with different artists in 2015 for $56 million, offers members entry to music, music movies and unique content material from artists, however the streaming music trade has been dominated by competitors like Spotify, Apple and Amazon.
In 2017, Jay-Z sold 33 percent of the company to Sprint for an undisclosed quantity. (After a merger, Dash is now part of T-Cell.) Earlier this week, Jay-Z purchased again the shares from T-Cell, and most can be bought to Sq. as a part of the deal.
Mr. Dorsey and Jay-Z started to debate the acquisition “just a few months in the past,” mentioned Jesse Dorogusker, a Sq. government who will lead Tidal on an interim foundation.
“It began as a dialog between the 2 of them,” he mentioned. “They discovered that sense of widespread goal.”
Mr. Dorogusker mentioned Sq., which was based in 2009, will provide monetary instruments to assist Tidal’s artists gather income and handle their funds. “There are different instruments they have to be profitable and that we’re going to construct for them,” he mentioned.