Jay Z to sue former Tidal owners for exaggerating subscriber numbers
US rapper Jay Z has said he is ready to sue media group Schibsted and venture capital firm Verdane for exaggerating Tidal’s user numbers ahead of his purchase of the music service.
The legal move against Tidal’s former owners comes one year after Jay Z’s purchase of the business, alongside celebrity co-owners Madonna, Beyonce and Rhianna, for $40m in March last year with the artist reportedly seeking compensation of $15m.
In a statement Tidal said: “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.”
At heart the conflict is believed to revolve around Tidal’s then subscriber figures and financial performance, for which Jay Z claims to have been given incomplete information.