In March, Square announced it was buying a majority stake in Jay-Z’s music company, Tidal, for $297 million and would add Jay-Z to the Board of Directors at the close of the deal. The deal officially went through on April 30 for $302 million.
Additionally to the deal, Square also entered a marketing and real estate deal with Roc Nation, an entertainment company Jay-Z co-founded. According to an SEC filing, Square will sublease nearly 16,000 square feet of office space in New York City for $1.5 million a year.
In a Twitter thread posted on March 4, Dorsey explained why a financial services company like Square would want to join forces with a music streaming platform such as Tidal.
“It comes down to a simple idea: finding new ways for artists to support their work,” Dorsey said in a tweet. “New ideas are found at the intersections, and we believe there’s a compelling one between music and the economy. Making the economy work for artists is similar to what Square has done for sellers.”
Tidal, a music streaming service, will operate independently under Square. It currently costs $10 a month ($20 for lossless hi-fi audio) and has a catalog of over 70 million songs and 250,000 music videos.
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