Square (SQ) – Get the Class A report from Square, Inc. said Thursday he had agreed to pay $ 297 million for a controlling stake in music streaming platform Tidal and that hip-hop legend Shawn “Jay-Z” Carter would join the company’s board of directors. financial services once the agreement is concluded.
Shares of the San Francisco payment processor at the last check were down 2.6% to $ 228.19.
The transaction is expected to close in the second quarter. Square does not expect Tidal’s financial results to have a significant impact on its consolidated revenue or gross margin in 2021. Tidal will operate independently within Square, the company said, alongside Seller and Cash App.
Square said in a statement that some current artists will be Tidal’s other stakeholders. Jay-Z is the incumbent and director of Tidal.
“It comes down to a simple idea: finding new ways for artists to support their work,” Jack Dorsey, co-founder and CEO of Square, said in a statement.
“New ideas are at the crossroads, and we think there’s a compelling one between music and economics. “
“Artists deserve better tools to help them on their creative journey,” Carter said. “Jack and I had many discussions about the endless possibilities of Tidal which made me even more inspired by his future.”
Tidal is available in 56 countries and has over 70 million songs and 250,000 videos. It was launched in 2014 by the Norwegian company Aspiro and is now owned by Project Panther Bidco, an Anglo-American holding company.
On Tuesday, Square said its industrial bank, Square Financial Services, started its operations.
Salt Lake City-based Square Financial Services “will offer business loan and deposit products, starting with underwriting and providing business loans for Square Capital’s existing lending product,” the company said. .