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Jay Z Served Legal Papers To TIDAL's Original Owners For Fudging Subscriber Numbers — See Their Response!

| Filed under: RihannaLegal MattersBeyonceKanye WestJay ZBusiness Blitz

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Is the captain thinking about jumping ship?!

Since purchasing TIDAL in a $56 million deal in 2015, Jay Z has had quite the turbulent year trying to keep his streaming service afloat.

And like most entrepreneurs who realize they've purchased a sinking ship, the music mogul is pointing the blame at the former owners!

Related: Nick Jonas Reveals Jay Z Helped Him Choose His Album Title!

According to reports, TIDAL sent a letter to Norwegian media company Schibsted ASA accusing them of inflating subscriber numbers when they were initially sold the service!

In an e-mailed statement, the company described their reasoning for serving the original owners papers, saying:

"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."

Yikes!

Luckily, the Watch The Throne rapper has been able to modestly grow TIDAL's customer base with the promise of exclusive content from artists like Beyoncé, Rihanna, and Kanye West — as well as their "high-fidelity" sound quality.

Though these tactics have apparently worked enough to garner over 3 million paying subscribers, those numbers pale in comparison to rivaling streaming services — Spotify has over 30 million paying subscribers and Apple Music already has over 11 million!

Related: Kanye's The Life Of Pablo Was Streamed HOW MUCH In Its First Week?

In response to TIDAL's claims about overstating its subscribers, Schibsted spokesperson Anders Rikter defended the sale, saying the buyer should have looked more carefully before it agreed to the deal:

"We disagree with the accusations in the letter and any potential claims. We would like to point out that the company was listed on the stock exchange with everything that entails regarding transparent financial reporting."

So, they're basically saying Jay Z didn't do his homework before buying the not-so-successful company! LOLz!

We're sure TIDAL is gearing up for a legal battle — we can already hear their war cry… in high fidelity sound!

[Image via FayesVision/WENN.]

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