Jay-Z (L) and Jack Dorsey
Phillip Faraone | Getty Images
Square, Jack Dorsey’s digital payments company, has acquired a controlling interest in the music streaming service Tidal, the company announced Thursday.
Square shares fell about 2% in the pre-market.
The deal is expected to be a $ 297 million mix of cash and stock and is expected to close in the second quarter of 2021. Existing artist shareholders will be the remaining stakeholders, Square said. Jay-Z, who bought Tidal for $ 56 million in 2015, will join Square’s board of directors.
Dorsey said Jay-Z will also “help run our entire business, including the seller and the Cash app, once the deal is closed”.
The move is an effort to Diversity Square, known for its credit card processor, payment hardware, and cash app. Finally the company officially started its banking operations.
Square does not anticipate Tidal’s financial results to have a material impact on Square’s consolidated sales or gross profits in 2021.
Tidal has struggled to keep up with the music streaming wars since its inception, and Dorsey’s stake could help keep the company moving forward. Jay-Z and Dorsey have teamed up in the past as well. Last month, Said Dorsey The couple set up a Bitcoin trust to support the development of digital coins in Africa and India.