Dorsey’s Sq. is buying a majority stake in Jay-Z’s streaming music firm Tidal

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Jay-Z (L) and Jack Dorsey

Phillip Faraone | Getty Photos

Square, Jack Dorsey’s digital funds firm, is buying a majority possession stake within the music streaming service Tidal, the corporate announced Thursday.

Sq.’s inventory was down about 2% within the premarket.

The deal is predicted to be a mixture of money and inventory of $297 million, and is predicted to shut within the second quarter of 2021. Current artist shareholders would be the remaining stakeholders, Sq. stated. Jay-Z, who purchased Tidal in 2015 for $56 million, will be a part of Sq.’s board of administrators.

Dorsey stated Jay-Z may also “assist lead our whole firm, together with Vendor and the Money App, as quickly because the deal closes.”

The transfer is an effort to range Sq., which is well-known for its bank card processor, fee {hardware} and Money App. Most not too long ago, the corporate officially launched its banking operations.

Sq. stated it does not anticipate Tidal’s monetary outcomes to have a cloth affect on Sq.’s consolidated income or gross revenue in 2021. 

Tidal has struggled to maintain up within the music streaming wars since its launch, and Dorsey’s stake may assist push the corporate ahead. Jay-Z and Dorsey have additionally partnered previously. Final month, Dorsey said the pair endowed a Bitcoin belief to assist the digital coin’s improvement in Africa and India.