Square, the payments-processing company led by CEO Jack Dorsey, announced plans to buy a “significant” majority stake in Tidal, the music and entertainment streaming platform founded by Jay-Z.
Square said it expects to pay a $297 million, in a combination of cash and stock, for the Tidal stake, with existing artist shareholders the remaining stakeholders. Tidal will operate independently within Square. Shawn “Jay Z” Carter is expected to join Square’s board subject to the closing of the transaction.
The deal will extend Square’s “purpose of economic empowerment” to musicians — a new category for the payments company. Square sees an opportunity to bring new systems and tools to help artists find new ways to support their work and find “financial freedom.”
“It comes down to one simple idea: finding new ways for artists to support their work,” Dorsey, who is CEO of Square and Twitter, said in a statement. “New ideas are found at intersections, and we believe there’s a compelling one between music and the economy. I knew Tidal was something special as soon as I experienced it, and it will continue to be the best home for music, musicians, and culture.”
Jay-Z commented, “I said from the beginning that Tidal was about more than just streaming music, and six years later, it has remained a platform that supports artists at every point in their careers. Artists deserve better tools to assist them in their creative journey.”
He added that he and Dorsey “have had many discussions about Tidal’s endless possibilities that have made me even more inspired about its future.”
Square does not expect Tidal’s financial results to have a material impact on Square’s consolidated revenue or gross profit in 2021.
Read More About:
Source: Read Full Article