However, Jay-Z and Dorsey have a history of working together, including collaborating on a Bitcoin development fund and sharing interests in cryptocurrency and philanthropy. The platform also faced a US federal lawsuit by artists who said they were owed royalties and a Norwegian criminal investigation over concerns about its inflated streaming numbers. Tidal had suffered “multimillion-dollar losses in each of its previous ten quarters,” had lost significant contracts, and accepted a $50 million loan from Jay-Z to shore up its finances. By 2020, Tidal had signed up 2.1 million paying subscribers, compared with Spotify’s 138 million, Apple Music’s 60 million, and Amazon Music’s 55 million. Jay-Z initially bought Tidal (then called Aspiro) with several others in 2015 for $56 million. According to Reuters, the complaint quoted an NYU business professor who called the purchase “a $300 million bar tab to hang out with Jay-Z.” Shareholders, led by a Florida pension fund, launched a class action suit claiming that Dorsey only bought Tidal as a favor to his friend, Jay-Z. The purchase of Tidal has been met with skepticism due to Tidal’s financial struggles and legal disputes. Jay-Z joined Block’s board after the purchase and remains a director. After adjustments, it paid $237.3 million for an 86.2% stake, according to Reuters. This deal made Jay-Z a board member of Block Inc and left many wondering whether Dorsey had been finessed into buying the relatively small streaming service at a premium price.īlock agreed in March 2021 to pay $396 million in stock and cash for an 87.5% stake in Tidal. In 2021, Jack Dorsey’s company, Block Inc (formerly known as Square), agreed to acquire Tidal for $306 million.
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