Sprint buys 33% Shares of Tidal Music at $200m

Sprint has bought 33% of stakes at Tidal, a music-streaming service controlled by hip-hop mogul Jay-Z.

Sprint, a telecommunications company controlled by SoftBank of Japan has 45 million customers.

Tidal’s new 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.

“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.

Billboard reports that Sprint is paying $200 million for its stake, which essentially means that Tidal is valued at $600 million.

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.