Aspiro Shareholders Try To Derail Jay-Z's Bid
February 24, 2015 at 12:06 PM (PT)
JAY Z’s attempt to acquire SWEDISH-based streaming service ASPIRO (NET NEWS, 1/30), has hit a roadblock set by the company's SHAREHOLDERS EQUITY ASSOCIATION, whose 120 members control more than 10% of the share capital and votes in the company.
After auditing the written offer from JAY Z's subsidiary company, PROJECT PANTHER BIDCO, the ASSOCIATION "can not make a final decision on the bid," insisting it is missing important information "concerning future capital requirements and the value of the company's loss carrying forward."
The statement also claims the company's newly appointed CEO ANDY CHEN engaged in sale talks without informing the minority shareholders.
"[We] believe that the bid [does not] sufficiently value the company's potential, considering it launched last fall in five countries, including the U.S. and U.K., with an additional 20 countries on the docket for this quarter. The document also claims the company had, as of the end of last year, $63.5 million in its coffers, with a significant value of tax loss, "which were not reported."
JAY Z's bid for ASPIRO's two streaming services, WIMP and TIDAL, was valued at $56 million. Sources claim the company is burning through their cash reserves at a rapid pace.