Sprint Aquires Minority Share of Tidal

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@Henry_McLeod

I thought the whole point of a reverse take over was control without necessarily owning the company on paper, e.g. a share majority. My own company did it to prevent the new merged entity from owing a third party a significant sum. They became senior partner despite the other company parting with the cash. 5/6th of the new board came from the side with the cash, the only director from my company who kept his job did so because there was no equivalent position in the other company. Jay Z will bring in the musical talent. Sprint will run day to day affairs and bankroll new ventures. They almost certainly have first choice on the purchase of any further shares that become available up to 51%.

Usually the term “reverse takeover” refers to the takeover of a publicly traded company by a private company. This is often because the private company wants to become public, and assuming control of a public company is an easier way to do that than making an initial public offering. Clearly this is not the case with Sprint/Tidal. Tidal is not taking over Sprint. In any event, it appears that Sprint will have only one member on the Tidal board, which does not give it much management clout. Plus, Sprint does not control itself. Softbank owns 80% or so of the company. As for “They almost certainly have first choice on the purchase of any further shares that become available up to 51%”, I have seen no evidence of that, although it is possible (or not). Perhaps I missed something?