07 May 2021

Jay-Z Becomes the First Billionaire Rapper After Two Major Corporate Deals

Jay Z

Shawn Corey Carter, known professionally as Jay-Z, is an American rapper, record producer, businessman, record executive, and songwriter. Recently, Jay Z hasclosed a deal to sell the majority stake in Tidal, to Jack Dorsey.

Square, a financial services platform run by tycoon Jack Dorsey, who is also the founder of the social media network Twitter, reached a definitive agreement to take control of the firm Tidal.

The latter is a music streaming platform owned by rapper Jay-Z that started a little over 6 years ago, with which he wanted musicians to have authority over their musical creations.

Square clarified that although they will have a majority stake, Tidal will continue to operate independently.

Net worth has been boosted by 40%

Jay-Z’s net worth has been boosted by 40% following two major deals by the businessman.

1. In the first week of March – 2021, it was officially revealed that Jay-Z has sold his controlling stake in streaming service Tidal to Square, which is the popular mobile payments firm that runs by Twitter co-founder Jack Dorsey.

As it was known, this agreement was closed at $297 million dollars, it’s also agreed upon that the rapper Jay-Z becomes part of the Board of Directors of Square.

2. The second major deal is that Jay-Z has sold 50% of his luxury champagne brand Armand de Brignac to luxury goods company Moët Hennessy Louis Vuitton.

Consequently, Forbes also reports that this rapper’s net worth is now increased from $1 billion to $1.4 billion.

Statement by Square

“The acquisition extends Square's economic empowerment purpose to a new vertical( musicians). Artists are entrepreneurs with a dream and deserve access to the systems, tools, and financial freedom to achieve those dreams at every stage of their career. Square has helped millions of businesses start, run and grow, providing them with the tools they need for success, “Square” said in a statement.

In addition to this, they indicated that one of their main aims is to take benefit of Square's experience to help musicians find new ways to support their work and therefore make better decisions regarding their musical creations. This means that, in short, what they are looking for is for them to better monetize their work.

“New ideas are found at the intersections, and we think there is a compelling one between music and economics. I knew Tidal was something special as soon as I experienced it, and it will continue to be the best home for music, musicians, and culture, "added Jack Dorsey.

What Jay-Z said after these major deals?

For his part, Jay-Z said that after more than 5 years, Tidal continues to be a platform that supports artists at every point in their careers.

“I said from the beginning that Tidal was about more than just streaming music. Artists deserve better tools to help them on their creative journey. Jack and I have had many discussions about the infinite possibilities of Tidal that have inspired me even more about its future. This shared vision makes me even more excited to join the Square board. This partnership will be a game-changer for many. I look forward to all that this new chapter has to offer!” Said the Mogul.

Jay-Z becomes the first billionaire rapper

The artist's empire is made up of a fortune of more than the US $ 1 billion, the result of his entertainment firm, as well as investments in alcoholic beverages, art, real estate, and other sectors, including a stake in Uber for an estimated value of US $ 70 million.

Jay-Z is officially hip-hop's first billionaire, Forbes announced Monday, boosted by his entertainment firm but also by the payoff from his investments in alcoholic beverages, art, and real estate.

The 49-year-old performer also manages a $ 75 million music catalogue, another $ 75 million from the entertainment company Roc Nation and $ 100 million from the streaming service Tidal.

In the real estate arena, in addition to their penthouse in New York's posh Tribeca neighbourhood, Jay-Z and his wife, superstar Beyoncé, own mansions in East Hampton, New York, and in the exclusive Bel-Air neighbourhood of Los Angeles, real estate that adds up to about $ 50 million to the rapper's fortune, Forbes added.

In 2017, Forbes said the musical couple had officially amassed a joint wealth of $ 1 billion. Working hard, smart and investing and selling is how you grow!