The company has gone from offering mobile payments to providing a full suite of tools for small businesses, including an in-house bank launched earlier this week to provide business loans and deposit products to sellers who use its card reader and other point-of-sale services.īeyond that, it builds on the relationship between Dorsey and Jay-Z. It also further expands Square’s portfolio of services.
The long-rumored deal offers an exit for Tidal, which has struggled to compete with larger rivals like Spotify. As part of the deal, Jay-Z will join Square’s board. In a press release, Square said it expects to pay $297 million in cash and stock for the stake. (SQ), the payments company founded and run by Twitter CEO Jack Dorsey, announced Thursday it has agreed to acquire a majority stake in Jay-Z’s Tidal platform. Square’s stock dropped a further 3% in after-hours trading.Jay-Z has 99 problems but figuring out a buyer for his struggling music streaming service is no longer one. Square’s share price dropped 6.7% in regular trading, to $218.41. Investors were not pleased with the news of the acquisition. As CNBC wrote, people are buying NFTs these days out of the belief that they’ll be able to prove ownership of a virtual item thanks to blockchain. Known more commonly as NFTs, the tokens operate on the Ethereum blockchain and offer a collector’s item that can’t be duplicated. Recode suggested that the deal may be focused around things such as Square selling T-shirts for musicians on tour but noted that the two companies could also work on non-fungible tokens. 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.” “New ideas are found at intersections and we believe there’s a compelling one between music and the economy. “It comes down to one simple idea: finding new ways for artists to support their work,” said Dorsey said in a statement. Officially the acquisition is being pitched as extending “Square’s purpose of economic empowerment to a new vertical: musicians.” The obvious question is why would a payment service such as Square, run by Jack Dorsey, who is also the chief executive of Twitter Inc., want to buy a less-than-successful music streaming service for an arguably high price. Obtaining a hard number for the company is difficult as well as of 2019, it was lumped in the 14% of music streaming companies regarded as “others” in data provided by Statista.Ī report in 2016 claimed that Apple was holding talks to acquire Tidal, but nothing further came of those talks.
SOURCE SQUARE TIDAL JAYZ 56M FREE
In offering no free version and only relatively high-priced subscription options, Tidal has struggled to find users.Ī month after launching in 2015, the service was described as sinking like a brick and though it carved out a niche audience, it has never achieved a significant market share. It competes directly with Spotify Technology SA, Apple Inc. Under the terms of the deal, previous majority owner Jay-Z is joining Square’s board, while other famous music artists that currently own minority shares in the company will remain as shareholders.įounded in 2014 and acquired by Jay-Z for $56 million in March 2015, the service differentiates itself by offering high-fidelity music streaming for $20 a month, as well as a lower-quality stream for $10 a month.
The exact size of the stake, made with a combination of cash and stock, was not disclosed. today revealed it has purchased a majority stake in Aspiro AB, the owner of the Tidal music streaming service, for $297 million.
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