Jay Z Sells 33 Percent of TIDAL to Sprint For $200 Million
Jay Z acquired TIDAL streaming platform March 2015 for a cool $56 million from a company called Aspiro. He partnered with other high profile artists like Kanye West, Daft Punk, Rihanna and many others, giving them a piece of the potentially very lucrative cake. His mission? Provide high definition streaming tech and culture to a bolstering technology.
But even with all the big names and exclusives, it doesn’t seem like the platform picked up too much steam, as Spotify and Apple Music are still miles ahead as far as subscriptions go. I mean, do any of your friends actually use it? Probably not.
That may all soon change.
News is now coming in that HOV has unloaded 33% of the company for an estimated $200 million to Sprint, putting the company’s valuation at over half a billion now, 10x more than what it was initially acquired for.
Sprint’s purchase has produced a $75 million budget for the service, which will give artists on the platform “the flexibility to create and share their work” – whatever that means.
— TIDAL (@TIDALHiFi) January 23, 2017
TIDAL will also provide “unlimited access to exclusive artist content not available anywhere else” to all of Sprint’s 45 million retail customers – also, whatever that means.
Sprint’s CEO Sprint CEO Marcelo Claure had this to say:
“Jay saw not only a business need, but a cultural one, and put his heart and grit into building Tidal into a world-class music streaming platform that is unrivaled in quality and content.
The passion and dedication that these artist-owners bring to fans will enable Sprint to offer new and existing customers access to exclusive content and entertainment experiences in a way no other service can.
Sprint shares our view of revolutionizing the creative industry to allow artists to connect directly with their fans and reach their fullest, shared potential. Marcelo understood our goal right away and together we are excited to bring Sprint’s 45 million customers an unmatched entertainment experience.”
You can read the full press release here.