Two years ago Square and Twitter co-founder Jack Dorsey announced the acquisition of Jay Z's music streaming service Tidal [click here if you missed that].
This week Square shareholders were defeated after filing a class-action lawsuit against Dorsey over the purchase...
From Reuters
A Delaware judge on Tuesday dismissed a shareholder class action seeking to hold Jack Dorsey and other board members at Block Inc (SQ.N) liable for approving the payments company's purchase of Jay-Z's streaming service Tidal.
Chancellor Kathaleen McCormick in Delaware Chancery Court said the Florida pension fund leading the case did not show that Block's directors acted in bad faith though the purchase it "seemed, by all accounts, a terrible business decision."
Once known as Square, Block agreed in March 2021 to pay $306 million for an 87.5% stake in Tidal. After adjustments, it paid $237.3 million for an 86.2% stake.
Block's board was faulted for approving the purchase though Tidal was losing money, had lost major contracts, faced a Norwegian criminal probe into its streaming numbers, and had accepted a $50 million loan from Jay-Z to shore up its finances.
The pension fund also said Dorsey, a co-founder of Block and Twitter, was Block's only top executive who supported the purchase, and bought Tidal because he and Jay-Z were friends.
Its complaint quoted a New York University business professor who called the purchase "a $300 million bar tab to hang out with Jay-Z."
But in concluding that Block directors did not breach their fiduciary duties, McCormick said she could not "presume bad faith based on the merits of the deal alone."
10 comments:
Sounds like Dorsey got scammed by a street hustla, known as "Jay-Z". Eh, well, Dorsey can at least say that he's partially responsible for Jay bragging about being a billionaire lmao smh
Good lord Jay is ugggo
I remember when Jay and all these celebs were practically begging black people to subscribe to tidal because it was something FUBU(for us by us), just to sell it to a white man.
Glad I stayed with my apple subscription. They were trying to put their foots on our necks to have access to their music catalog but eventually all of them put their music back on other music streaming apps smh.
JayZ finessed YT. I’m not mad at all. Shrugs.
Delaware laws are partial to corporations.
Delaware laws are partial to businesses.
Will Jay Finesse A DNA ?? Raymir Is Waiting
Jay needs to finesse some scissors, a good conditioner and a new face. He looks atrocious.
JAY Z BEENOUT HERE LYING STEALING AN FINESSING ..SLOWLY ITS COMING OUT
Yes he’s show is ugly
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