Guess which ASX 200 shares Jay-Z just added to his portfolio

The rap legend, who is also on the board of this company, received $3.2 million worth of shares in this former market darling.

| More on:
A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Hip hop legend Jay-Z would be the furthest person from investors' minds when they buy and sell ASX shares.

But did you know he actually sits on the board and owns shares in an S&P/ASX 200 Index (ASX: XJO) company?

If you own shares in fintech Block Inc CDI (ASX: SQ2), you are buying into a company that has Jay-Z as a director and investor.

In fact, just last month he added more Block shares to his portfolio.

The rapper, whose real name is Shawn Carter, disclosed that he was issued a total of 41,759 shares in early October. The stocks came to him under his own name, an "immediate family member", and through his holding companies.

Based on the share price on Wednesday morning, that's worth about $3.2 million.

So how did this come about?

How did Jay-Z join the Block board?

The short answer to Carter's involvement is that Block Inc acquired Carter's Tidal music streaming service in 2021.

The long answer is that Block Inc co-founder and chief Jack Dorsey spent the summer of 2020 in the Hamptons hanging out with Carter.

A friendship developed, and Dorsey came up with the idea of buying out Tidal, which was financially struggling at the time.

As part of the acquisition, Jay-Z joined the board of Block Inc.

Block Inc was later unsuccessfully sued by some of its own shareholders for the deal, who accused Dorsey of using company funds to shore up his friendship with a celebrity.

The Delaware judge actually agreed with this, but ultimately dismissed the lawsuit.

"It is reasonably conceivable that Dorsey used corporate coffers to bolster his relationship with Carter," Judge Kathaleen McCormick wrote in her ruling.

"Plaintiff has alleged sufficient facts to make a reasonable person question the business wisdom of the Tidal acquisition, but plaintiff has failed to plead that the committee defendants acted in bad faith and thus faced a substantial likelihood of liability for that decision."

No doubt those investors may have been less angry if the performance of Block shares were better.

The Block share price has tumbled almost 80% since the Tidal deal closed in April 2021.

The stock joined the ASX in January 2022 after acquiring the Australian buy now, pay later business Afterpay.

Motley Fool contributor Tony Yoo has positions in Block. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A female executive smiles as she carries out business on her mobile phone.
Broker Notes

Buy Telstra shares due to its 'excessive' discount

This telco giant's shares could be unnecessarily cheap according to Bell Potter.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

A better day is expected for Aussie investors today. Here's what's happening.

Read more »

Happy couple enjoying ice cream in retirement.

If I were 60 I'd buy these ASX shares for dividends

These stocks could provide strong levels of passive income for years.

Read more »

Two fashionable asx investors dancing among confetti.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a pretty awful start to the trading week for ASX shares today.

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Consumer Staples & Discretionary Shares

Why is this ASX share crashing 60% on Monday?

Shareholders of this stock may need a stiff drink today.

Read more »

A fit man sits and prepares to dive into a hole made in frozen ice.
Mergers & Acquisitions

Paladin Energy shares on ice as fission-powered acquisition rumours grow

It looks like Paladin is about to go shopping...

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.

How rich are the Guzman Y Gomez founders following the company's IPO?

Guzman's IPO has netted its co-founders millions...

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »