Square has become one of the most attractive and affordable credit card payment processors in recent times, and the addition of Magic Johnson to their board was seen as a vote of confidence. However, now that Johnson has officially resigned, no one seems to know what is on the horizon for Square’s public image.
Magic Johnson Leaves Square
This news came as quite a surprise to the entire financial world, as Magic Johnson only joined the Square board less than a year ago. Given this former NBA player’s sixth sense for business ever since he left the basketball courts, a lot of people saw his position on the Square team as a vote of confidence for the success of this company.
According to the resignation letter – or the version the world has seen, at least – Johnson invested more money in Square than he had initially assumed. Becoming a stakeholder in the company requires devoting more time to this business as well, a commitment he – allegedly – could not stick to.
Moreover, there has been a lot of fundraising going on for Square to expand their business, most of which has come to fruition thanks to Magic Johnson himself. With over US$1,3 billion raised in Q1 of 2016, things are looking very good for the company, although the resignation of their all-star board members raises a lot of questions.
But the show must go on, and the business world is no exception to this unwritten rule. The position of Magic Johnson will be filled by former Goldman Sachs partner Paul Deighton. At the time of writing, it was not confirmed when this transition would happen, but it will not take all that long by the look of things.
All in all, the reason for Magic Johnson’s departure seems shrouded in mystery, and there are still a lot of questions that need to be answered. An individual who funds a company himself and helps raise additional capital will not walk out the door for no apparent reason. Only time will tell what happened, and what the future will hold for Square.
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