Significant majority owner, though jay zad and tidal’s other existing artist shareholders, will retain some ownership in the company. Tidal will operate independently within square according to a company release and jz will join square’s board of directors. New ideas are found at intersections and we believe there’s a compelling one between music and the economy square chief executive officer, jack dorsey, said in a prepaid statement. Bloomberg news previously reported that dorsey and jay z, who are friends, had discussed a potential deal it’s, not immediately clear how square will help tidal build its business, but there is a lot of overlap between the music industry and square’s existing market, which includes payments and commerce, Says jesse dorguska the square executive who will serve as interim leader of tidal inside its new parent company? There was a real opportunity at this intersection of music and art in the economy that was uniquely made for the pair of us. Dorogoska said some obvious examples would include helping musicians run their merchandise, businesses, artists, sell tickets, they sell special experiences. He added jz acquired tidal for 56 million dollars in 2015 and announced plans to turn it into the first hottest owns streaming. Service musicians have long complained about record labels, exploiting them and that frustration hasn’t abated as they’ve transitioned to having relationships with streaming services. Spotify technology, sir, has built a multi billion dollar business using music created by millions of artists, many of who are struggling to make ends meet, but jay z, didn’t align himself with any paupers.
The rapper recruited more than a dozen of the biggest artists in the world, including rihanna, kanye, west and calvin harris as co owners. They announced their vision for the service at a new york city press event, where alicia keys declared that this moment would change music history tidal got an initial boost from exclusive access to new music from jay z, beyonce andre hanna, among others, but the service struggled to Keep up with competing services from spotify apple incorporated, amazon.com incorporated and alphabet incorporated youtube, all of which have larger customer bases. Norwegian newspaper nearing slave reported heidl had overstated its subscriber code and had been falsifying streaming data charges. The company denied in late 2019 jay z, released his music on dorogoska, said square, was less interested in tidal’s streaming market share than its potential to bring together the common ideals of jay, z and dorsey, who have become close in recent years. Dorsey has long wanted square to evolve from a payments company for small businesses into a broader operation, with a number of standalone units square already has two of those verticals the company’s cash app for consumers and square seller for small businesses. Tidal gives square a third potential business line. The acquisition won’t necessarily lead to more revenue, at least not right away square said it doesn’t expect tidal to have a material impact on its sales or profit.