Marcelo Claure, Sprint's CEO, will join the Tidal board, and musician Jay Z will continue to run the business, according to a statement Monday. Financial terms of the deal weren't disclosed. Sprint paid $200 million for the stake, according to a report in MusicBusinessWorldwide.
Sprint's pact with Tidal comes after larger wireless rivals have added streaming services to the lists of features they offer to subscribers. AT&T Inc. waives data charges to customers that subscribe to its online TV service, DirecTV Now. Verizon Communications Inc. provides customers free streaming of NFL games and its go90 video service. T-Mobile US Inc. lets users stream music and video from more than 100 partners without racking up big bills.
Shares of Sprint rose as much as 2.8% to $9.18 at 10:06 in New York on Monday, their highest price since June.
Tidal has struggled to add customers in a market dominated by Stockholm-based Spotify, Apple Inc. and Pandora Music Inc. Tidal was in discussions with Apple about a sale last year, according to a report by The Wall Street Journal. The company also tried to attract interest from Samsung Electronics in early 2016, according to Variety.
Tidal said last year that it surpassed 3 million paying customers, but since then, there have been questions about whether the company has been able to hold on to users. Jay Z's holding company, S. Carter Enterprises LLC, agreed to buy Tidal's maker, Aspiro AB, in January 2015 from Schibsted ASA, a Norwegian media company. Soon after making the $56 million purchase, Tidal accused the previous owner of inflating the user numbers.
-- Bloomberg News