Jay-Z’s Tidal preparing legal action against former owners

A business controlled by rapper Jay-Z has notified the former owners of the Tidal music service of potential compensation claims, saying they overstated the number of subscribers before the sale.

Project Panther Bidco Ltd. bought Tidal's Scandinavian parent company for $56 million a year ago. But it now says it was misled about how many people subscribed to the service, suggesting the price tag was too high.

"The total number of subscribers was 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," Tidal said in a statement.

The Norway-based Schibsted Media Group, the biggest of the previous owners, said "we disagree with the accusations in the letter and any potential claims."

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