This hardly has to be a game-changing, risk-it-all gambit to pay off: The acquisition price is a sliver of Square’s $100 billion-plus valuation, and even the company’s official announcement said it expected no material impact on revenue or profits this year.”
“And it’s plausible that in a world where the business of being a musician really is more of a business, for indie artists as well as mainstream stars, serving as their Fintech solution of choice (for merch payment processing and other tools similar to those Square has developed for its business customers) could be worth something over time for Tidal. He added that “for starters, the motivation for buying Tidal could be as simple as Square making a high-level acqui-hire: Jay-Z, whose rep for street cred and entrepreneurial acumen continues to top itself - luxury giant LVMH just bought into his champagne brand, and he’s a backer of soon-to-IPO Oatly - will join Square’s board.”Īs noted by Walker, “perhaps this will continue whatever dialogue he and Dorsey may have started while yachting together over the summer.” According to Walker, the “bottom line: There’s no downside to Jay-Z’s counsel and halo effect.” However, there could be several reasons - “perhaps not so lofty as those Dorsey suggested - that this deal isn’t as utterly random as it sounds,” Walker claims. Walker pointed out in a blog post that the thread that soon followed provided somewhat vague PR-speak responses and answers to that question: “New ideas are found at the intersections, and we believe there’s a compelling one between music and the economy.”Īlthough that’s likely to be expected at the announcement stage of a “distinctly unexpected” partnership, Walker described the “immediate” market reaction as “tepid,” with Square shares dropping around 6.75% on Thursday (March 4, 2021). Square CEO Jack Dorsey confirmed the deal via Twitter - the other company he manages - where he “preemptively” raised the obvious question: “Why would a music streaming company and a financial services company join forces?” Jesse Dorogusker, the Square executive stepping in to lead Tidal, told the Times Dorsey and Jay-Z began discussing the deal “a few months ago.” Which, of course, lines up with that late-August Hamptons hangout.According to the announcement, $297 million in cash and stock was provided for the acquisition. Jay-Z previously sold a third of the company to Sprint in 2017 he bought back the shares he sold from T-Mobile, which now owns Sprint, last week, per the New York Times. Jay-Z bought Tidal in 2015, touting the service as artist-owned alongside other musicians including Rihanna, Kanye West, and his wife, Beyoncé. And he tweeted it all alongside a Tidal playlist from Jay-Z, “celebrating artists and the entrepreneurial spirit,” featuring songs like Drake’s “Started From the Bottom,” Puff Daddy’s “Victory,” and Frank Sinatra’s “Come Fly With Me.” “We’re going to start small and focus on the most critical needs of artists and growing their fanbases.” Dorsey also said Jay-Z’s new spot on the board will touch the entire company, not just Tidal. QN90di6zWD- TIDAL March 4, 2021ĭorsey tweeted that the deal began from “a simple idea: finding new ways for artists to support their work.” “Given what Square has been able to do for sellers of all sizes and individuals through Cash App, we believe we can now work for artists to see the same success for them, and us,” he added in another tweet.
Our mission to empower artists continues. “This shared vision makes me even more excited to join the Square board.”
#SQUARE TIDAL JAYZ JAYZ SQUAREROSMAN SERIES#
In a series of tweets, Jay-Z called the deal “a game-changer for many.” “Jack is one of the greatest minds of our times, and our many discussions about TIDAL’s endless possibilities have made me even more inspired about its future,” he wrote. (Hopefully he can get time off for the Rock and Roll Hall of Fame induction.) “Square and TIDAL will continue to empower artists and create a more sustainable, collaborative, and beneficial music industry,” the companies said in a statement announcing the deal. Square purchased the streaming service for $297 million, and Tidal co-owner Jay-Z will now sit on Square’s board. Tidal, Jay-Z’s exclusive streaming service, has been sold to Square, the point-of-sale services company cofounded by Twitter CEO Jack Dorsey. Well at least this explains that Hamptons boat trip. Photo-Illustration: Vulture and Getty Images Jay-Z and Jack Dorsey, from friends to business partners.
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