According to reports, Sprint Corp (NYSE:S) acquired a 33% share in rapper and businessman Jay Z’s music streaming service Tidal. The agreement is reportedly worth $200 million to bring the high-fidelity streaming service to Sprints 45 million post and prepaid customers.
According to reports, a deal also comprises a $75 million a year marketing fund that will be utilized to acquire and promote exclusive content from artists. The fund can go to production, marketing, concerts, or a number of other uses to get content in front of users.
“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 statement. “Sprint CEO Marcelo Claure understood our goal right away and together we are excited to bring Sprint’s 45 million customers an unmatched entertainment experience.”
In 2015 Jay Z purchased Tidal for reported $56 million from Swedish company Aspiro. Since then, the streaming service, touting artist exclusives and high-quality audio, has faced growing concerns over the direction of the business. Company’s five executives left under Jay Z’s ownership, two of which were temporary CEO’s. The company appointed current Chief Executive Jeff Toig in December 2015.
Recently Tidal was accused of inflating its subscriber numbers, suggesting the service had 1.2 million active users and 850,000 subscribers at the time it revealed it had reached 3 million. But Sprint’s attainment for a third of Tidal shares to confidence in the company’s position and future.
In the first quarter of 2015 Jay Z sued Tidal’s former owners for misleading him on how the service reports subscriber numbers. Sprint Corp (NYSE:S) remained quiet about its progress, but said in March it had reached more than 3 million subscribers all over the world.