A-list stream dream team
Rap mogul Jay Z (inset), who acquired a Scandinavian streaming music service for $56 million in 2015, on Monday flipped a 33 percent stake in the company to Sprint at a stunning $600 million valuation, the company said. In return, the company, Tidal, will make exclusive songs available to the wireless company’s 45 million customers, both entities said. Tidal — a cash-strapped company whose other backers include Rihanna (left), Kanye West, Beyoncé and Madonna — said its management team will keep running the service. Sprint Chief Executive Marcelo Claure will join its board. The close relationship between Sprint and Tidal stretches back to April 2015, when, The Post reported at the time, Sprint and its parent, the Japanese tech conglom- erate SoftBank, had taken undisclosed minority stakes in Tidal.
Curiously, back then Sprint denied the news.
At a splashy launch event at the time, Tidal’s then-chief investment officer, Vania Schlogel, said the service had been working closely with Sprint.
Asked in October about Sprint’s ambitions in the entertainment arena, Claure told The Post, “We might be doing something in the music space. I just can’t go there.”
Barclays analyst Amir Rozwadowski wondered what type of content Sprint will gain from Tidal and whether it will do anything to drive an increase in subscribers.
The deal underscores the extent to which the phone giants are chasing content firms to lure customers and boost data consumption.
Verizon tied up with AOL, and AT&T is in the process of acquiring Time Warner and earlier reported a tie-up with Taylor Swift for exclusive content.
Last week, Tidal was accused by a Norwegian newspaper of inflating its subscriber numbers. Tidal said in March it had 3 million subscribers.