The Music Company Jay-Z Bought For $56 Million Two Months Ago Is Now Worth $250 Million
ByBrian Warneron April 2, 2015inArticles›Celebrity News
At the end of January, it was revealed that an investment group led by Jay-Z had purchased a Swedish music company called Aspiro for $56 million in cash. $56 million was a 60% premium over the company’s value the day before the deal was announced.
You probably recognize Tidal because we wrote about its awkward launch party in NYC two days ago . Jay unveiled his plans for Tidal with the help of 15 music superstars like Kanye West , Madonna , Deadmau5 and Rihanna . He also gave each of his 15 partners a 3% equity stake in the streaming service.
(GUILLAUME BAPTISTE/AFP/GettyImages)
Tidal attempts to differentiate itself from the crowd in two main ways: 1) Tidal offers a slightly higher quality stream of music than competitors (get ready for buffering), 2) Artists will get a larger cut of the revenues. These are good goals, but unfortunately, Tidal has received a decent amount of criticism because the monthly fee is more than twice the equivalent plan offered by Spotify. There is also no free (ad-supported) version of Tidal.
Most of the feedback we received about Tidal basically questioned why anyone would pay any monthly fee for music, let alone 2X the current standard. It’s also a little ironic to see a group of musicians who have a combined net worth of $2.8 billion position themselves as super heroes fighting for “fair trade” rights for artists.
Anyways… Regardless of what you think of Tidal, it has certainly turned out to be an amazing investment for Jay-Z.
After giving away 45% of the company’s equity to his 15 partners, Jay and his original investors own the remaining 55%. Jay is reportedly the largest stakeholder. Assuming he owns 30-45% of that remaining equity, Jay has seen the value of his investment increase from $17-22 million to $77-$102 million . That’s a 363% return in two months.
Where do you think Tidal will be in a year? Thriving and competing with the majors, or languishing in the tech cemetery?
- Jay-Z Is Now Worth $650 Million Thanks To Tidal
- The 16 Partners In Jay-Z’s New Streaming Service “Tidal” Have A Combined Net Worth Of $2.8 Billion
- Jay-Z Expands Empire With Acquisition Of Swedish Music Streaming Company
- Square (Jack Dorsey’s OTHER Company) Is Buying Tidal From Jay-Z For $300 Million
- Jay-Z’s Music Company Tidal Seems Destined To Fail… So What Went Wrong?
- Tidal Is Reportedly Out Of Cash And On The Verge Of Failure
