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Square buys majority of Tidal and adds Jay-Z to board to shake artist economy – TechCrunch

this morning squareFinTech, a fintech company that serves both individuals and businesses, announced that it has purchased a majority stake in Tidal, a music streaming service. transaction, Worth about $ 297 million, Allows artist partners to maintain ownership in the music company.

Square CEO Jack Dorsey used his other company, Twitter, to explain the deal this morning. Dorsey seemed to expect this deal to create skepticism — it’s definitely there.In him Opening message, He asked a rhetorical question: “Why music streaming companies and financial services companies work together ?!”

Why is that so? Dorsey’s hope is that his company will be able to recreate the success of CashApp and other Square products in the music world. Dorsey pointed out that “new ideas can be found at intersections,” and argued that the confluence of “music and economy” was one such convergence point.

The deal also installs musician and businessman Jay-Z on Square’s board.

The initial reaction to the deal has proven to be negative. It’s not difficult to pair up the strange looks of squares and tidal. And Square made acquisitions in the past, but they appeared next to each other and didn’t stick.the company Purchased food delivery service caviar in 2014 Before Sold to DoorDash in 2019, For example; the square Venture-level transaction revenue It is not important for the focus discussion.

However, you can easily create a Square-Tidal tie-up bull case.American fintech spent very little time single Through its market capitalization ratio to SMEs and the choice to keep artists stakes, it effectively employs many ambassadors for the brand.

And Dorsey is no doubt that Square rocked many offline business commerce games with its original card reader. Would you like to challenge music, which is part of the economy that has moved from the physical world to digital in the last few years, like small businesses in recent quarters?

Square’s business users, the “seller ecosystem,” are becoming more and more digital. In the latest quarterly earnings report, “face-to-face” usage is declining as a percentage of sellers’ total payments (GPV), while “online only” and “omnichannel” GPVs are loosening. ..

Square has won a well-known victory in its consumer Cash App service. Monthly active numbers reached 36 million In December 2020, the number increased from 24 million in the same period a year ago.You are with a music company Cash App Audience Distorting Youth.. And having Jay-Z on the Square conference room table doesn’t really hurt your company’s innovation. He may bring a fresh perspective.

And then there’s the issue of NFT, an irreplaceable token, a new form of digital asset that has recently become a cause celebrity in the crypto community. Given that Square has a growing cryptocurrency business through CashApp, Invested hundreds of millions of dollars in Bitcoin itself.. It’s an interesting question if Square can afford a music-based NFT to a larger consumer user base. If the answer is yes, Square may be in a leading position to create that market.

Perhaps the Square-Tidal deal will not produce the future growth that Square envisions. However, the deal is cheap, catching Jay-Z as a leader is a victory, and it is difficult to win just by defending the company.


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Square buys majority of Tidal and adds Jay-Z to board to shake artist economy – TechCrunch

https://techcrunch.com/2021/03/04/square-buys-majority-of-tidal-adds-jay-z-to-its-board-in-bid-to-shake-up-the-artist-economy/ Square buys majority of Tidal and adds Jay-Z to board to shake artist economy – TechCrunch

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