COMMERCIAL / CONTRACT
Jay Z, who purchased TIDAL from Nordic parent company Aspiro for 464m Swedish Krona ($57m) in March last year, is taking action against the vendors for over estimating the number of subscribers at the time of sale. Whist TIDAL said “We are excited that one year after TIDAL launched, we have surpassed 3 million subscribers globally” they added “It became clear after taking control of TIDAL and conducting our own audit that the total number of subscribers was actually well below the 540,000 reported to us by the prior owners.” According to Swedish news service BreakIt – quoting an article in Norwegian title Dagens Næringsliv (“Today’s Business”) – Aspiro’s former major shareholders, including Schibsted and Verdane, have been contacted by TIDAL.
TIDAL now says “As a result, we have now served legal notice to parties involved in the sale. While we cannot share further comment during active legal proceedings, we’re proud of our success and remain focused on delivering the best experience for artists and fans.“
It is thought Jay Z and his finance vehicle, Project Panther Bidco will try and to claim back a sum in the ‘region of 100 million Krona’.
Schibsted Communications Manager Anders Rikter told told Dagens Næringsliv that the company was “unsympathetic” to Jay Z’s letter. He then told BreakIt [translated]: “We want to point out that it was a publicly traded company that was acquired, [which means] transparency of financial reporting [was required]. Otherwise we have no comments.”