Square buying majority stake in Tidal
Posted: Thu Mar 04, 2021 8:43 am
https://www.bloomberg.com/news/articles ... ard-member
I really don't get the play here. "there is a lot of overlap between the music industry and Square’s existing market, which includes payments and commerce"??? I mean, couldn't you say that about most industries? Also I can say from the inside that music streaming can't be profitable because of the royalties demanded by the big three record labels. So I don't get why Square wants to get into a losing business or how that will help them.Square Inc. has agreed to buy a majority stake in Tidal, the streaming music service led by rapper Jay-Z, as part of an effort to expand the company’s suite of financial tools to musicians and emerging artists.
Square will pay $297 million in a mix of cash and stock to become Tidal’s “significant majority” owner, though Jay-Z and Tidal’s other existing artist-shareholders will retain some ownership in the company. Tidal will operate independently within Square, according to a company release, and Jay-Z will join Square’s board of directors.
“New ideas are found at intersections, and we believe there’s a compelling one between music and the economy,” Square Chief Executive Officer Jack Dorsey said in a prepared statement. Bloomberg News previously reported that Dorsey and Jay-Z, who are friends, had discussed a potential deal.
It’s not immediately clear how Square will help Tidal build its business, but there is a lot of overlap between the music industry and Square’s existing market, which includes payments and commerce, says Jesse Dorogusker, the Square executive who will serve as interim leader of Tidal inside its new parent company.