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Jay-Z Just Bought Spotify’s Biggest Rival For A Cold $56 Million

Yup, Jay-Z just acquired one of Spotify’s most feared streaming rivals WiMP for a good $56 million, according to the Financial Times reports.

Currently the streaming rival is greatly popular in the Scandinavian region, boasting millions of users and offering a very similar music service as the giant Spotify. The company behind WiMP also runs Tidal, another Norwegian version of the music service.

The company owned by Jay Z, Project Panther Bidco, offered the Sweden-based company $56 million for Aspiro, the company that runs WiMP and Tidal. According to Reuters, Aspiro’s main shareholder has already accepted Jay Z’s offer, virtually sealing the deal.

It is safe to say that Jay Z isn’t the first rapper to get involved with streaming sites as rappers nowadays are becoming more frequent business moguls, diversifying their brands through several different investments in the music industry among other industries. Dr. Dre, co-founder of Beats Music, is the perfect example as his headphones and streaming music company got acquired by Apple for $3 billion in May.

Here’s a statement from Jay Z about the acquisition offer:

Panther believes that the recent developments in the entertainment industry, with the migration to music and media streaming, offers great potential for increased entertainment consumption and an opportunity for artists to further promote their music. Panther’s strategic ambition revolves around global expansion and up-scaling of Aspiro’s platform, technology and services.

Streaming services has been hitting it big, as companies like WiMP and Spotify now dominate the music streaming market. Piracy has fallen to record lows in the country, and the music industry is thanking the legal streaming sites for the steep decline in file-sharing.

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Picture Credit: Getty Images

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