The square footage declined after the digital payment company said it would acquire a majority stake in Tidal’s music streaming service for $ 297 million in cash and stocks. Tidal fought versus Spotify technology (SPOT) and Apple (AAPL), but could give a marketing boost to the Consumer Cash App, analysts say.
Square (SQ) does not expect the financial results of the tide in 2021 to have a significant impact on consolidated revenue or gross profit. The transaction is expected to close in the second quarter of 2021.
Tidal Shawn “Jay-Z” Carter joins the Square’s board. Jay-Z, rapper and music industry businessman, acquired Tidal in early 2015 for $ 56 million.
In its core business, Square has set itself the goal of building a two-way digital payment ecosystem with products designed for both merchants and consumers. The Square Cash App helps individuals manage money.
Rectangular stocks fell 4.1% on the stock market today, near 224.60 in the morning trades. The digital payment set will be expanded from 83.30 entry points.
Square Stock: Cash App is the main growth leader
The square shares closed with 36 million Cash App users in 2020, compared to 30 million at the end of June and 24 million in December 2019.
The Square Cash app, a peer-to-peer money transfer service, is competing PayPal Holding(PYPL) Venmo, Zelle and others.
Amid the coronavirus emergency, the Cash App has emerged as a digital alternative to traditional banks. Cash App users to buy, hold and sell digital currency Bitcoin.
The Cash App also offers a stock trading feature. The Cash App offers a credit card through a deal with Marqeta.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for upgrades to 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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