Last month, Jay Z and numerous high-profile artists came together to announce the relaunch of the first ever artist-owned music streaming service. The relaunch tripled Tidal’s value from $56 million to $250 million in just a few weeks. But while it looks like the streaming business was a great investment for Jay Z, recent internal changes make you wonder what’s really going on. The company’s CEO Andy Chen is reportedly leaving the company. Per the Swedish website Breakit, Chen is being replaced by Tidal’s former CEO Peter Tonstad until a replacement is hired. In addition to Chen’s departure, 25 employees will be laid off. This news makes Chen’s “resignation” sound A rep for Tidal told Breakit: “TIDAL continues to ignite a global conversation; one that puts the artist and music lover at the center of the experience. As the new interim CEO of TIDAL, Peter Tonstad is focused on the company’s industry-leading content quality and connection to the fans. Tonstad has been with Aspiro Group, TIDAL’s parent company since 2010 and replaces former CEO Andy Chen.” Chen’s resignation sound as if he may have been forced out. This is often the case when corporations gain a new CEO or owner with a fresh new perspective. Jay Z probably has a list of capable leaders who can carry out his vision for Tidal. So, out with the old and in with the new. It’ll be interesting to see how Chen’s departure impacts the company.
