Many assume so Twitter was the reason behind Jack Dorsey's impressive net worth, but that's actually not the case. If Elon Musk Dorsey acquired Twitter for $44 billion in October 2022 and held a modest 2% stake in the company's outstanding equity, equivalent to about 18 million shares. Dorsey's pre-tax profit from the Twitter sale was $978 million.
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The true source of Dorsey's wealth lies in his dedication to block inc, a reputable payments company originally known as Square. As a co-founder, Dorsey's ownership of 43 million shares of Block has proven extremely lucrative. With a current share price of $64, Dorsey's stake is valued at approximately $2.75 billion.
Dorsey's net worth is currently $4.4 billion. Like many tech billionaires, he's using his fortune to get involved in ventures that many would consider “cool.” While this type of investment is commonly used by tech billionaires, individual investors have also started investing in startups via equity crowdfunding.
His acquisition of Tidal, Jay-Z's music streaming service, was nothing more than “$300 million to hang out with Jay-Z,” according to some business analysts and angry block shareholders.
On March 4th, the world stunned when Block announced its agreement to acquire Tidal for $306 million. The news broke through a tweet from Dorsey, which featured a seemingly casual photo of him and Jay-Z enjoying each other's company at dawn at a mansion in Hamptons, New York. The tweet expressed Dorsey's gratitude for Jay-Z's vision and leadership, and expressed his excitement about the collaboration.
At 5:04 am, Dorsey tweeted, “I am grateful for Jay's vision, wisdom and guidance. I knew TIDAL was something special when I experienced it and I feel inspired to work with him. He will help now.” Run our entire business including seller and Cash App once the deal closes.
The details of the deal between Dorsey and Jay-Z were believed to have been negotiated over wine.
When Dorsey and Jay-Z are together, they might enjoy a glass of wine, Dorsey's preference, or the D'USSÉ cognac that Jay-Z enjoys.
As later alleged in a lawsuit by Block shareholders, the idea for Block's acquisition of Tidal came about while Dorsey was “summering” with Jay-Z in the Hamptons. The allegation was that Dorsey attended a block board meeting out of the blue via Zoom from the Hamptons and said he wanted to buy Tidal.
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Dorsey's proposal surprised many for a number of reasons. First, Block, primarily a payments company, hasn't previously been in the music streaming industry. It also emerged that Tidal was struggling with major financial problems, prompting Jay-Z to personally loan the ailing service $50 million to keep it afloat. Artists left the platform and those who stayed had no contractual obligation to stay.
Given Tidal's dire circumstances, the music streaming service's value appeared questionable at best, with some arguing that it was essentially worthless. Still, Dorsey and Jay-Z went ahead with the deal, buying 80% of Tidal for $306 million.
The latest legal battle ended in defeat for shareholders. The Delaware judge overseeing the case ruled against the shareholders, emphasizing that technically a bad deal doesn't break any laws. That ruling left Block and Dorsey in the dark, though the deal was branded as “a $300 million date to hang out with Jay-Z.”
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This article: Jack Dorsey's “$300 Million Bill” To Match Jay Z Findings In Lawsuit, originally appeared on Benzinga.com
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