Jay Z looks to enter world of music streaming with $56 million bid
Another one of hip-hop’s music moguls gone entrepreneur is looking to enter the world of streaming. Reports indicate that Jay Z is making an investment of $56 million to acquire platform(s) of his own.
According to Reuters, Project Panther Bidco Ltd, a company controlled by Jay Z himself, says the rapper has come to an agreement with overseas-based Aspiro and will acquire the company which operates not one, but two streaming platforms.
Aspiro’s two streaming interests span the globe. The first is WiMP, available only in select European countries including Norway and Sweden. The other is Tidal, a recently relaunched platform established in the US, the UK, and Canada, among its list of countries. Tidal prides itself on it’s high resolution audio, quality assumed to match that of CDs, with rates nearing $20, according to USA Today.
Peter Globokar, Managing Director of Mooreland Partners, the mergers & acquisition firm advising Aspiro, said in an official statement, “While the offer is in its early days, once completed it will likely lift Aspiro and its advanced music streaming service to a new level. “
Listed in Sweden, the publicly traded Aspiro will be acquired by Jay Z’s S. Carter Enterprises for 464 Swedish Crowns — or 56 million American dollars. Although seemingly not yet set-in-stone, S. Carter would control more than 90% of Aspiro.
As the game’s newest player, Jay Z is looking to give Dr. Dre some company in the streaming world. He’ll presumably join the competitive market with an interest similar to and up against Spotify and its 60 million users, Beats Music and powerhouse backed by Apple, Jimmy Iovine and Dr. Dre.
Where could Jay Z’s edge be compared to his counterparts? While little has been revealed on consumer impact, he tells Reuters he sees Aspiro as “an innovative high-quality company with strong future growth potential.”