Confirming the news, Jay-Z, real name Shawn Carter, tweeted: “I said from the beginning that Tidal was about more than just streaming music, and six years later, it has remained a platform that supports artists at every point in their careers. Artists deserve better tools to assist them in their creative journey.
“Jack is one of the greatest minds of our times, and our many discussions about Tidal’s endless possibilities have made me even more inspired about its future. This shared vision makes me even more excited to join the Square board.
“This partnership will be a game changer for many. I look forward to all this new chapter has to offer.”
Dorsey tweeted: “Square is acquiring a majority ownership stake in Tidal through a new joint venture, with the original artists becoming the second largest group of shareholders, and JAY-Z joining the Square board. 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. New ideas are found at the intersections and we believe there’s a compelling one between music and the economy. Making the economy work for artists is similar to what Square has done for sellers.
“I’m grateful for Jay’s vision, wisdom, and leadership. I knew Tidal was something special as soon as I experienced it, and I’m inspired to work with him. He’ll now help lead our entire company, including Seller and the Cash App, as soon as the deal closes.”
While Square will acquire a significant majority stake, the existing artist shareholders will remain shareholders.
Tidal was founded in Norway in 2014 before a group of artists including Kanye West, Beyonce, Coldplay, Rihanna, Madonna and Alicia Keys, led by Jay-Z, acquired the company for $56million (£40m) the following year.