Jigga is heading to court and he wont be the one standing in the dock. The owner of the huge streaming service TIDAL is suing its former owners claiming that they mis-represented subscriber figures before he purchased the company in 2015. The Rocafella Mogul is seeking $15 million from the ex owners Aspiro and its major shareholders Schibsted Media Group and Verdane Capital.
TIDAL told USA on Thursday in a statement:
“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,”
“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 responded to the claim through Norway’s BreakIt.
“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,” the company said. “Otherwise we have no comments.”
Jay Z paid $56 million to purchase TIDAL. Since then, the streaming service has grown its global subscriptions to over three million. A major influence on those figures was Kanye West’s exclusive album The Life of Pablo, which was reportedly streamed 250 million times in its first 10 days of availability through the platform.
We will keep you updated about the outcome of the case.
