Jay-Z suing previous Tidal owners over subscriber numbers

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Lost $56 mill, had to fall back...

Jay Z is showing signs of buyer’s remorse.

A year after buying struggling music-streaming service Tidal in a $56 million deal, the hip hop mogul is going after the previous owners for compensation. Tidal sent a letter to Schibsted ASA, a Norwegian media company, accusing the seller of overstating subscriber numbers at the time of the deal.

“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 an e-mailed statement. “As a result, we have now served legal notice to parties involved in the sale.”

"The key to the streaming business is scale," Windsor said in a March 30 e-mail. "Tidal is holding itself out to the market as a service that offers high quality streams but there is only a limited number of music buffs that care enough to pay the premium."

Jay Z Says Firm That Sold Him Tidal Inflated Subscriber Numbers