Business News Digital

Minority shareholders in WiMP/Tidal question valuation in Jay-Z’s takeover bid

By | Published on Wednesday 25 February 2015


Minority shareholders in WiMP and Tidal owner Aspiro have questioned the value put on the business by the Jay-Z-owned vehicle that is trying to buy it.

Management at and key shareholders of Aspiro backed the Jay-Z-led bid to buy the company late last month, very probably aware that WiMP and Tidal are operating in an increasingly competitive market, with lower user numbers than key rivals, and in a sector where deep pockets are generally required to stay in business.

But some smaller shareholders are not convinced that the $56 million offer is good enough. And in a posting spotted by Digital Music News, an association representing those shareholders says “we believe that the lack of information from Aspiro makes it hard to evaluate the offer correctly”.

But, it went on, “a consistent view of the minority shareholders who have registered their holdings with the association is that the offer does not sufficiently value the company’s potential. Especially given the extensive investments and launches conducted during the fall of 2014. In addition launches are planned in a further 20 countries in Q1 2015”.

Although yet to reach a final opinion on Jay-Z’s bid for the company, the association says it “has raised questions about the company to the ‘independent bid committee’, in which we requested answers to a number of important issues and we have so far not received a response. Shareholders in the minority have loyally contributed to the financing of Aspiro up to today’s level. The offer provides no premium for this, which feels very unsatisfactory”.