Square has confirmed a deal to acquire control of music streaming service Tidal. It will pay a mix of cash and stock worth USD 297 million for a "significant majority stake", while existing artist shareholders in Tidal also will remain stakeholders. Tidal will continue as an independent business within Square, alongside its payments businesses.
Square sees the deal as extending its sales platform to a new vertical: musicians offering their tracks on Tidal. "Artists are entrepreneurs with a dream and deserve access to systems, tools, and financial freedom to reach those dreams at every stage in their career," the company said in a statement.
As part of the deal, Tidal co-founder Shawn 'Jay-Z' Carter will join Square's board.
The acquisition is expected to close in Q2. Square said it does not expect any major financial impact from the takeover on revenue or gross profit.
