Report: Jay-Z Bidding For Streaming Music Service
January 30, 2015 at 12:23 PM (PT)
Hip-hop entrepreneur JAY Z has made a $56 million offer for the SWEDISH company ASPIRO, a SPOTIFY competitor offering niche music services, WiMP and TIDAL, the N.Y. TIMES reports. ASPIRO noted in a statement that JAY Z made the bid through his company PROJECT PANTHER.
Negotiations reportedly began in DECEMBER, with the offer representing a 59% premium over the stock’s closing price on THURSDAY. The music streaming service's board has already registered its approval of the offer.
The streaming market is already a crowded marketplace with SPOTIFY, DEEZER, RDIO, RHAPSODY, SLACKER and YOUTUBE either having entered or about to enter the fray. APPLE paid $3 billion for BEATS, the company founded by DR. DRE and JIMMY IOVINE as a prelude to their own involvement in the burgeonong area.
A spokeswoman for JAY Z told the TIMES that streaming “offers great potential for increased entertainment comsumption and an opportunity for artists to further promote their music. PANTHER’s strategic ambition revolves around global expansion and up-scaling of ASPIRO’s platform, technology and services.”
WiMP, available in a handful of EUROPEAN countries, and TIDAL, which arrived in BRITAIN and the U.S. last SEPTEMBER, both stream music in "lossless" audio formats that are much higher in quality than what is offered by SPOTIFY and most of the competition.
WiMP has 512,000 paying users, according to ASPIRO’s most recent quarterly report; no totals are revealed for TIDAL, which sells subscriptions at $20 a month, twice what is charged by SPOTIFY and most other streaming services, which are in the $9.99 range.