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Jay Z’s takeover of TIDAL is about a year old and the company recently boasted passing 3M subscribers. However, Hova is accusing the entity that sold him the streaming music service of inflating its number of subscribers at the time Jigga copped it for $56M.

Reports Bloomberg:

A year after buying struggling music-streaming service Tidal in a $56 million deal, the hip hop mogul is going after the previous owners for compensation. Tidal sent a letter to Schibsted ASA, a Norwegian media company, accusing the seller of overstating subscriber numbers at the time of the deal.

“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,” Tidal said in an e-mailed statement. “As a result, we have now served legal notice to parties involved in the sale.”

Jigga is seeking compensation from Schibsted for allegedly pulling the okee doke. However, Schibsted claims Jay Z and co. did their due diligence and knew what it was.

Schibsted defended the sale process, saying the buyer conducted due diligence before it agreed to the acquisition, according to an e-mail from the company. Jay Z’s holding company S. Carter Enterprises LLC agreed to buy Tidal’s maker, Aspiro AB, in January 2015.

“We disagree with the accusations in the letter and any potential claims,” said Anders Rikter, a spokesman for Schibsted. “We would like to point out that the company was listed on the stock exchange with everything that entails regarding transparent financial reporting.”

TIDAL still trails Spotify and Apple Music when it comes to subscribers. But exclusive music from the likes of Beyonce, Rihanna and Kanye West have helped it make strong gains.

It was recently reported that TIDAL has plans to begin streaming films. TIDAL & Chill on deck?

Photo: WENN.com