Photo Credit: Block Inc
TIDAL-owner Block has acquired the music industry-focused financial services firm HIFI, whose backers include Quincy Jones, Diplo, and 3LAU.
Block (formerly known as Square), the payment technology company launched by Twitter co-founder Jack Dorsey, has acquired HIFI, a financial services firm focused on the music industry. While financial details have yet to be disclosed, the deal closed on Tuesday (October 10) according to a person with knowledge of the transaction.
Launched in 2020 with backers such as Diplo, Quincy Jones, 3LAU, and G-Eazy, HIFI enables clients to track their royalty income from multiple sources, including publishers, distributors, and performance rights organizations. The acquisition will allow HIFI to “further our shared purpose of economic empowerment with the financial technologies and services we have built to help artists thrive.”
“HIFI was founded by a team with a shared passion for music and a deep respect for the artists who create it,” begins a statement on HIFI’s website. “With the support of top investors and music creators, we’ve worked to provide innovative financial products, empowering artists and their teams across the industry to achieve financial transparency and independence.”
Block is best known for the payment and e-commerce solution software Square and Cash App, but since acquiring TIDAL in 2021 from Jay-Z for more than $300 million, it has started further expanding its music company portfolio. It boasted a revenue of $10.5 billion for the first half of 2023.
“Block has long worked to create economic access across its ecosystems, and through its TIDAL business, is focused on serving artists at every stage in their career,” HIFI’s statement continues. “We could not think of a better path for HIFI and our vibrant community going forward.”
HIFI’s impressive list of financial backers include Quincy Jones, Diplo, 3LAU, G-Eazy, Coran Capshaw (Red Light Management), Michelle Jubelirer (Capital Music Group), Michael McDonald and Jonathan Eshak (Mick’s Management), as well as Jason Ve and Rob Stevenson (300.)
Besides its music company acquisitions, Block owns two cryptocurrency companies with open-source platforms: Spiral and TBD.