March 4 (Reuters) – Payments firm Square Inc on Thursday agreed to buy a controlling stake in Tidal, a music streaming service owned by rapper Jay Z, for $ 297 million in cash and shares.
Square, co-founded by Twitter Inc CEO Jack Dorsey, said Jay Z, real name Shawn Carter, will become a member of Square’s board of directors.
“Why would a music streaming company and a financial services company join forces?!… It comes down to a simple idea: finding new ways for artists to support their work,” Jack Dorsey said on Twitter.
Square did not disclose the percentage of stake.
Tidal is called an artist-owned service backed by Kanye West, Beyoncé, Madonna, Rihanna, and Nicki Minaj, among others, and is available in over 56 countries.
Tidal will operate independently within Square and the existing artist shareholders will be the other stakeholders, Square said in a statement.
Jay Z bought Tidal for around $ 56 million in 2015. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Ramakrishnan M., Bernard Orr).
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