NEW YORK (Hypebot) – This week TIDAL announced that it had 3 million paid subscribers alongside impressive stats for its slate of exclusives. But even as Jay Z was popping the champagne corks his lawyers were prepping a massive lawsuit against TIDAL's former owners.
Jay Z 's legal team has put the former owners of Aspiro and its music streamer WiMP, which Jay Z bought and turned TIDAL, on notice that they believe that they "significantly" exaggerated both user stats and the company's financial condition prior to purchase. Apsiro had claimed 503,000 paying prior to the sale.
Media company Schibsted and venture capitalists Verdane both received letters outlining the charges. The local business press estimates potential damages at north of $15 million USD.
Schibsted communications manager Anders Rikter told Today's Enterprise that his company had received the demand letter from Jay Z , but that it "says nothing about sums in the letter we have received about. All figures are pure speculation."
Statement from TIDAL
We are excited that one year after TIDAL launched, we have surpassed 3 million subscribers globally. The growth in our subscriber numbers has been even more phenomenal than we’ve previously shared. 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.