According to reports, a judge ruled that Jack Dorsey has the right to move forward in acquiring Jay-Z's Tidal streaming platform. However, the judge didn't offer their ruling without dishing out a backhanded comment in the process.
Chancellor Kathaleen McCormick mentioned the financial troubles facing Tidal in the midst of this purchase by highlighting how the music platform was “failing financially, losing its major contracts, and facing an ongoing criminal investigation.” All of which Dorsey's company, Block, knew about before proceeding in the purchase. “It seemed, by all accounts, a terrible business decision,” McCormick wrote.
“Under Delaware law, however, a board comprised of a majority of disinterested and independent directors is free to make a terrible business decision without any meaningful threat of liability, so long as the directors approve the action in good faith,” she added.
Per SFGATE, "Block entered a term sheet to buy a majority interest in the music firm in late 2020; Dorsey and Carter were spotted together in Hawaii a few days later. The company closed the deal the following April, buying 86.23% of Tidal for $237.3 million — almost $200 million of which was reportedly marked as “Goodwill” in accounting. Carter became the 12th member of Block’s board."
Source: sfgate.com
