Square Inc. said it agreed to buy a significant majority stake in Tidal, a music and entertainment platform owned by rapper Shawn “Jay-Z” Carter and other artists, for $297 million in cash and stock.

The San Francisco digital-payments company said Thursday that Mr. Carter will join its board as part of the deal, and Tidal’s current shareholders will remain co-owners.

Square said the deal will help musicians find new ways to support their work. The company said Tidal will operate independently within Square, alongside its seller and cash app ecosystems.

Square said it expects to complete the transaction in the second quarter, adding that it doesn’t expect the deal to have a material impact on its consolidated revenue or gross profit this year.

Mr. Carter’s deal with Square comes after last month’s agreement to sell a 50{960021229dc1dc07dce4932a9ddab0b26243ff9ca1f758a9c1fcae84a7a57436} stake in Armand de Brignac, his high-end Champagne brand, to luxury house LVMH Moët Hennessy Louis Vuitton SE .


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