Square, Jack Dorsey’s digital payments company, is set to acquire a majority ownership stake in the music streaming service Tidal, the company announced Thursday.
Square’s stock was down about 3% in the morning.The deal is expected to be a mix of cash and stock of $297 million 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 in 2015 for $56 million, will join Square’s board of directors.
Dorsey said Jay-Z will also “help lead our entire company, including Seller and the Cash App, as soon as the deal closes.”
The move is an effort to diversify Square, which is well known for its credit card processor, payment hardware and Cash App. Most recently, the company officially launched its banking operations.