Jay-Z and Jack Dorsey Join Forces as Square Acquires a Majority Stake in Tidal
Jay-Z sporting his infamous mauve suit
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Jack Dorsey and Jay-Z will team up on another business venture as Dorey’s digital payments company, Square, is acquiring a majority ownership stake Jay-Z’s Tidal.
Insiders believe that Dorsey’s infusion of cash can possibly improve Tidal’s fortunes as it has has struggled to compete against other streaming music companies such as Spotify and Apple Music since its launch.
Square maintained that Tidal’s financial results will not have a material impact on Square’s 2021 consolidated revenue and/or or gross profit.
The deal reportedly will be comprised of a combination of cash and stock of $297 million.
As far as the timing, the deal is expected to close in the upcoming second quarter of 2021.
The remaining stakeholders in Tidal will be artists who possess existing stakeholder arrangements.
Once the deal is finalized, Jay-Z, who purchased Tidal in 2015 for $56 million, will subsequently Square’s board of directors.
In a statement, Dorsey exclaimed that Jay-Z will “help lead our entire company, including Seller and the Cash App, as soon as the deal closes.”
The Square/Tidal deal is not the first time Jay-Z and Dorsey have teamed up.
The two moguls endowed a Bitcoin trust to spur on the digital coin’s growth in Africa and India.
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Kevin James has over 20 years of experience in the entertainment industry in various facets. He has worked as a recording artist, songwriter, producer, on-air radio personality, background actor and film director. Kevin is a Member of the National Writer's Union.