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Following Sprint Stake, How Does Jay Z's Tidal Investment Rank Among Hip Hop's Biggest Deals?

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Following Sprint Stake, How Does Jay Z's Tidal Investment Rank Among Hip Hop's Biggest Deals?

Hip hop might not be dead yet. Sprint Corp (NYSE: S) recently announced a equity stake in Jay Z's streaming service Tidal, reportedly paying $200 million for a 33 percent stake, valuing the company at $600 million. The acquisition by Sprint sits as one of the biggest hip-hop deals ever.

As part of the deal, Tidal will be available to Sprint’s 45 million customers, and Sprint CEO Marcelo Claure will join Tidal’s board of directors. Jay Z initially paid $56 million for Tidal when it was called “Aspiro.” Other equity stake holders in the company include artists Madonna, Rihanna, Daft Punk, Alicia Keys, Jason Aldean and Kanye West, among others.

Other Hip-Hop Moves In The Market

Hip hop’s biggest stars are no strangers to big time corporate deals. In 2014, Apple Inc. (NASDAQ: AAPL) made its biggest acquisition ever after purchasing Beats Electronic for $3 billion, from hip-hop heavyweight Dr. Dre. Interestingly enough, the Beats acquisition also included a subscription streaming service as well, Beats Music.

Rapper 50 Cent scored a huge corporate buyout nearly a decade ago after he took equity in an endorsement deal with Vitaminwater’s parent company Glaceau before the company was purchased by The Coca-Cola Co (NYSE: KO) for $4.1 billion. 50 Cent’s stake was valued at a wide range, from $100 million–400 million; his current finances are a bit unclear.

Tidal's Sprint Deal Just One Of Jay Z's Many

The latest deal for Jay Z is just one of many huge deals the rapper has secured throughout his highly successful career. In 2008, Live Nation Entertainment, Inc. (NYSE: LYV) locked up a $150 million investment in Jay-Z for a stake in his investments and acquisitions, publishing rights and money from touring.

Image Credit: By Mike Barry from Wirral, England - IMG_0673, CC BY 2.0, via Wikimedia Commons

 

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