Sprint Corp (NYSE:S) has bought a 33% stake in Jay Z’s Tidal music streaming service.
Sprint Corp says that its 33% stake in Tidal will allow it to bring the service to all of its 45 million customers in the near future. The deal will still have Tidal ran by Jay Z and other artists. However, S CEO Marcelo Claure will be joining the streaming service’s Board of Directors.
The deal between Sprint Corp and Tidal will bring the wireless service’s customers unlimited access to exclusive content from Tidal. The music streaming service will expand this with more exclusive content. Tidal currently has 42.5 million songs and 140,000 videos available through its streaming service.
““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.”
Sprint and Tidal didn’t reveal financial details of the deal. However, an insider source claims that Sprint’s 33% stake in the music streaming service cost it $200 million. This same source also says that the deal includes $75 million per year for marketing. This will go toward helping artist bring exclusive content to Tidal.
Tidal was bought by Jay Z in 2015 for $56 million. The music streaming service has faced criticism over a lack of direction. There have also been recent claims that the company has been inflating its subscriber numbers, reports MarketWatch.
S stock was up 3% as of Noon Monday.