Tidal, music-streaming service controlled by hip-hop mogul Jay-Z, has sold 33% of its stake to Sprint, a telecommunications company.
The deal is a breath of fresh air for the company which has been struggling to compete with the likes of Apple Music, Spotify and Pandora.
According to Billboard, Sprint is paying $200 million for its stake, which essentially means that Tidal is valued at $600 million.
“Sprint shares our view of revolutionizing the creative industry to allow artists to connect directly with their fans and reach their fullest, shared potential,” Jay-Z said in a statement.
“Marcelo understood our goal right away, and together we are excited to bring Sprint’s 45 million customers an unmatched entertainment experience.”
Based on the terms of the deal, Jay-Z, Beyoncé, Madonna, Kanye West and Alicia Keys will continue to run the service.
Marcelo Claure, the chief executive of Sprint, is expected to join Tidal’s board.
Although Tidal says it has more than three million subscribers, Midia Research, a market research company, recently estimated that the streaming service had only one million paying users.
In 2015, a financial statement filed by Aspiro AB, Tidal’s Swedish holding company, said the music-streaming service suffered a net loss of $28 million.
Jay-Z acquired Tidal two years ago for $56 million.
Sprint, which has 45 million customers, is controlled by SoftBank of Japan.
Copyright 2018 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Follow us on twitter @Thecablestyle