The lawsuit claims TIDAL’s former owners distorted subscriber numbers.
Ralph Bristout Mar 31, 2016
According to Bloomberg, Jay Z is going after the previous owners of Tidal for claims that he was given inflated subscriber numbers before acquiring the service.
The news was first reported by Norwegian press as the Roc Nation mogul filing a multi-million dollar lawsuit against the former owners of Tidal, which sold the service to him for about $56 million.
“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,” said Tidal representatives in an emailed statement to Bloomberg. Before the deal, the streaming service was owned by the Norwegian media company Schibsted ASA.
The statement continues, stating, “As a result we have now served legal notice to parties involved in the sale.” It’s been reported that TIDAL wants about $15 million back.
Meanwhile, Schibsted defended the sale, telling Norway’s BreakIt News, as relayed by USA Today, “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. Otherwise we have no comments.”
The lawsuit comes just a few days after Tidal revealed that its service has now gained more than 3 million subscribers worldwide, thanks to exclusives like Kanye West’s The Life of Pablo.
Sourced From – https://revolt.tv/stories/2016/03/31/jay-reportedly-taking-legal-action-tidal-owners-6253597a67