Shareholder backing just became one of Jay Z’s 99 problems.
The million-dollar music mogul’s bid for Spotify rivals Wimp and Tidal has been scuppered by shareholders who rejected the deal.
The minority shareholders who hold a 10 per cent stake in Aspiro, the parent company of the Swedish music-streaming services, have failed to back the half a billion krone (£40m) deal, despite the blessing of Norwegian media group Schibsted, Aspiro’s largest shareholder.
Shareholders believe the deal, which puts a 59.1 per cent premium on its share price, undervalues the company.
Jay Z’s company Project Panther has yet to respond by either withdrawing raising or lowering its bid for a 90 per cent stake but it will have to amend its offer to proceed.
"The motive for the bidder's passivity is shrouded in mystery," said Carl Rosén, chief executive of the Stockholm Shareholders' Association.
It also noted that the shareholders who accepted the offer are able to withdraw their acceptance and any resistance from shareholders can block a compulsory acquisition of the minority shares.
The acquisition would see the rapper and businessman rival Dr Dre-founded and now Apple-owned Beats Music, other streaming services such as Deezer, as well as Spotify.
At the end of the year Aspiro counted 512,000 paying customers compared to Spotify's 15m.