Jay-$350 Z’s million deal to sell Tidal to Jack Dorsey’s financial services business Square has officially closed.
Square revealed the deal in March, stating that it will pay $297 million in cash and shares for an unspecified majority interest in Tidal, which Jay-Z and a group of other artists bought for $56 million in 2015.
According to TMZ, the transaction closed on Friday and Square paid $350 million for an 80 percent stake in the firm. According to TMZ, Square will also secure licensing deals with the platform’s major record labels, and Desiree Perez, CEO of Jay-entertainment Z’s empire Roc Nation, will continue to assist with Tidal’s operations.
Square stated in March that the transaction would close during the second quarter, which began in April. Additionally, the company stated that Jay-Z would join Square’s board of directors following the transaction’s completion. However, as of this writing, the company had not announced Jay-appointment Z’s to the board.
The deal allows Jay-Z to leave Tidal, which has struggled against larger streaming competitors such as Spotify. The app has been harmed by low subscription numbers — estimated to be between one and five million, a pittance in comparison to Spotify’s 356 million monthly active users — and high executive turnover.
Square’s stock fell nearly 2% following the deal’s announcement in March.
The March announcement followed numerous clues from Dorsey and Jay-Z, born Shawn Carter, that they were working on something. The pair were spotted lounging on a yacht in the Hamptons in August alongside Jay-celebrity Z’s wife, Beyoncé, before news of their Square-Tidal collaboration leaked in December.
While the acquisition allows Square to grow into a new selling ecosystem, it raises concerns about why a financial products company would acquire a music streaming startup. Dorsey defended the agreement in a series of March tweets, stating that he intends to assist Tidal musicians in growing their businesses and fan bases by developing partnership resources, simplifying the process of selling products, and producing “completely new listening experiences.”
“Given what Square has accomplished with Cash App for merchants of all sizes and individuals, we believe we can now collaborate with artists to achieve the same success for both parties,” he said.
Square’s stock was trading slightly lower Monday, down about 0.5 percent.