Square is going into the streaming market
Square has entered into a deal to buy a controlling interest in Tidal’s subscription-based streaming service. The agreement is scheduled to conclude in the second quarter of 2021, awaiting the customary closing terms and regulatory approval. Once this occurs, Tidal will run separately in Square alongside the Cash App and Seller ecosystems.
Under the terms of the agreement, Square will pay $297 million in cash and stock in return for a “big” majority share. Existing artist owners will retain their shares and be the remaining creditors.
Square is perhaps best known as the mobile payment service that Jack Dorsey created in 2009. Most lately, the firm has made headlines for its interest in Bitcoin.
Back in October, Dorsey lost $50 million of Square’s money on 4,709 bitcoins. Based on the market valuation of Bitcoin, this fund is currently worth more than $237 million. And late last month, Square revealed that it had bought another 3,318 bitcoins for $170 million.
It is also worth remembering that a director of the Tidal Board and shareholder of Shawn “Jay-Z” Carter will join the Board of Square as part of the contract. The rapper has been active in the online music business earlier in 2015 when he bought Aspiro technology for $56 million.