SPRINT ACQUIRES 33 PERCENT OF TIDAL FOR ESTIMATED $200 MILLION
Sprint has purchased a 33% stake in TIDAL for a reported sum of $200 million. (For context, Jay purchased TIDAL from Aspiro for a reported $56 million in January of 2015.) On TIDAL’s end, 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.” What that exactly means remains to be seen.
So, why does Sprint make such a sizable investment in a company that was reported to be suffering so much, rumors of sales to Samsung and Apple made international headlines last year? Sprint CEO Marcelo Claure has your answer. “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,” Claure said in a press release. “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.”
If that fancy speak doesn’t interest you, here’s what this new partnership means for Sprint users: the company’s “45 million retail customers” will soon be granted “unlimited access to exclusive artist content not available anywhere else.” What that exactly means remains to be seen, but it’s an objectively promising ideal.
Here’s what Jay had to say about his new deal, which, on the surface, appears to be innately beneficial to TIDAL’s growth. “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.”