JAY Z’s legal troubles with TIDAL is far from over. The hip-hop mogul is taking the former owners of the music streaming service to court.According to legal ‘docs’ filed by lawyers representing the current owners of the company, ‘Hov’ argued that the previous owners gave them a grossly inflated subscription data which triggered an over- valuation of the company.
Jay Z and his partners are suing to recover $15M from the ex-owners of TIDAL, who are Aspiro, Schibsted Media Group, and Verdane Capital.
“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,” TIDAL said in a statement to USA Today.
“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.”
Schibsted shot back saying that the company was publicly traded, and as a result, all of the financial information was made public.
“We want to point out that it was a publicly traded company that was acquired, with what it means by the transparency of financial reporting,” representatives for the company said.
Jay Z and a bunch of other artists purchased TIDAL last year for a reported $56M. But things have not been easy since then, because the company already went through three CEO changes, and a couple of other top level staff.
Thanks to Kanye West’s exclusve TIDAL album, The Life of Pablo, the subscription base has grown by 100% since February of this year.
TIDAL also regularly sees exclusive releases from some of their artists owners, including Beyonce, Rihanna, Nicki Minaj, Lil Wayne and more. (urbanislandz.com)