Financial Technology giant Square founded by Twitter CEO Jack Dorsey has acquired a major stake in Tidal, a music audio-video streaming service led by American rapper Jay-Z.
Cash payment app, Square, announced on Thursday, 4 March, that it has bought Jay-Z’s music streaming platform for $297 million.
Breaking the news on Twitter, Jack Dorsey said,“ 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.”
Clearing doubts on why a financial company acquired a music firm, Jack said, “It comes down to a simple idea: Finding new ways for artists to support their work. New ideas are found at the intersections, and we believe there’s a compelling one between music and the economy. Making the economy work for artists is similar to what Square has done for sellers.”
Jack also confirmed that Jay-Z will also help lead the entire company , “including Seller and the Cash App, as soon as the deal closes”.
What Is Square App?
Square is a FinTech company founded by Twitter CEO Jack Dorsey 12 years ago. The idea behind Square was to give small sellers a simple tool, which allows them to send and receive money for free through a mobile application. This application lets merchants make transactions via their smartphone devices.
“We did the same for individuals with Cash App, which now enables a comprehensive set of financial services for those who weren’t able to access it earlier,” added Dorsey in a tweet.
What Is Tidal App?
Music app Tidal was started by popular American rapper Jay-Z, which focused on an uncompromised experience of music.
Tidal has more than 70 million tracks, which includes exclusive releases, interviews, and music videos. The platform is completely ad-free and focuses to brings you closer to the artists you listen to.
“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,” continued the thread by Twitter CEO Jack Dorsey.
‘Tidal Has Another Chance to Grow’: Square
According to Billboard, Square’s hardware lead Jesse Dorogusker has reportedly said that the company is looking to create new tools for artists while it continues to offer its streaming services to its consumers.
“We think the streaming service is an important part of it, and it is growing and will continue to grow,” Dorogusker told news publication Billboard.
Meanwhile, Twitter CEO Jack has also noted that, “Artists deserve better tools to assist them in their creative journey.”
Responding to the current scenario, Jay-Z in a press note said, “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.”
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