San Francisco-based Square has struck a deal to acquire a majority ownership stake in Tidal, an “artist-led global music and entertainment platform.” According to a press release, “Square expects to pay a mix of cash and stock of $297 million for a significant majority ownership stake, and existing artist shareholders will be the remaining stakeholders.”
According to the companies, Tidal will operate independently within Square. Tidal board member and shareholder Shawn “Jay-Z” Carter is expected to join Square’s board of directors when the deal closes.
Square offers a software and hardware system that helps sellers start, run and expand their businesses. Sellers use Square’s point-of-sale (POS) mobile application to take payments. Individuals use its Cash App to spend, send, store and invest money.
Tidal said it “brings artists and fans closer together through unique original content and exclusive events.”
“It comes down to one simple idea: finding new ways for artists to support their work,” said Jack Dorsey, co-founder and CEO of Square. “New ideas are found at intersections, and we believe there’s a compelling one between music and the economy.”
“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,” Jay-Z said. “This partnership will be a game-changer for many. I look forward to all this new chapter has to offer.”
“Tidal sets a high standard for supporting artists, capturing music culture and delivering the best audio quality to fans,” said Jesse Dorogusker, a Square executive who will serve as interim lead of Tidal when the acquisition is complete.
Square has been branching out. This week (March 1), it began operating a state-chartered industrial bank in Utah. That means that Square Financial Services will now be the 16th Federal Deposit Insurance Corporation (FDIC)-insured industrial bank operating in Utah. Square said it will primarily service a nationwide market of small businesses, including those that already operate on the Square payment processing platform.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More