Square’s stock dropped a further 3% in after-hours trading. (NYSE: SQ) announced today that it has entered into a definitive agreement to acquire a majority ownership stake in TIDAL, the global music and entertainment platform that brings fans and artists together through unique music, content, and experiences. Square’s share price dropped 6.7% in regular trading, to $218.41. In connection with the deal, Square plans to name Shawn JAY-Z Carter to Board of Directors. Investors were not pleased with the news of the acquisition. As CNBC wrote, people are buying NFTs these days out of the belief that they’ll be able to prove ownership of a virtual item thanks to blockchain. The deal turns over the majority of the shares of TIDAL to Square, thus fully releasing Hova of all financial responsibilities of the app. Known more commonly as NFTs, the tokens operate on the Ethereum blockchain and offer a collector’s item that can’t be duplicated. According to Rap-Up, the hip hop great-turned-business mogul has finalized the deal to sell the streaming service to the Jack Dorsey-owned Square for a hefty 302 million. Recode suggested that the deal may be focused around things such as Square selling T-shirts for musicians on tour but noted that the two companies could also work on non-fungible tokens. I knew Tidal was something special as soon as I experienced it and it will continue to be the best home for music, musicians and culture.” “New ideas are found at intersections and we believe there’s a compelling one between music and the economy. “It comes down to one simple idea: finding new ways for artists to support their work,” said Dorsey said in a statement. Officially the acquisition is being pitched as extending “Square’s purpose of economic empowerment to a new vertical: musicians.” The obvious question is why would a payment service such as Square, run by Jack Dorsey, who is also the chief executive of Twitter Inc., want to buy a less-than-successful music streaming service for an arguably high price. Obtaining a hard number for the company is difficult as well as of 2019, it was lumped in the 14% of music streaming companies regarded as “others” in data provided by Statista.Ī report in 2016 claimed that Apple was holding talks to acquire Tidal, but nothing further came of those talks. In offering no free version and only relatively high-priced subscription options, Tidal has struggled to find users.Ī month after launching in 2015, the service was described as sinking like a brick and though it carved out a niche audience, it has never achieved a significant market share. It competes directly with Spotify Technology SA, Apple Inc. Under the terms of the deal, previous majority owner Jay-Z is joining Square’s board, while other famous music artists that currently own minority shares in the company will remain as shareholders.įounded in 2014 and acquired by Jay-Z for $56 million in March 2015, the service differentiates itself by offering high-fidelity music streaming for $20 a month, as well as a lower-quality stream for $10 a month. The exact size of the stake, made with a combination of cash and stock, was not disclosed. today revealed it has purchased a majority stake in Aspiro AB, the owner of the Tidal music streaming service, for $297 million.
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