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May 7, 2021, 5:55 p.m. EDT

Square officially puts Jay-Z on board of directors after Tidal deal closes

By Wallace Witkowski

Square Inc. disclosed late Friday that it has officially added Shawn Carter as a board member of the credit-card payments processing company after closing a deal with the music-streaming service Tidal.

Carter, better known as the rapper Jay-Z or Beyonce’s husband, is co-founder and majority owner of entertainment company Roc Nation LLC, from which Square (NYS:SQ) will sublease nearly 16,000 square feet of office space in New York City for $1.5 million a year, with an option to extend the sublease for two additional six-month terms, according to a Securities and Exchange Commission filing . Roc Nation and Square also reached a marketing agreement between Square and Carter that will lead to a $200,000 commission for Roc Nation.

Back in March, Square announced it would buy a majority stake in Tidal for $297 million, and make Carter a board member upon the close of the deal. In the filing, Square said its subsidiary Vandutch Acquisition Corp. completed its majority stake purchase of Carter’s streaming-music service Tidal on April 30 for about $302 million.

Shares of Square are up 212% over the past 12 months, compared with a 47% gain in the S&P 500 index (S&P:SPX) and a 53% rise in the tech-heavy Nasdaq Composite Index (NASDAQ:COMP) .

Link to MarketWatch's Slice.