Jay-Z acquires streaming company Aspiro – will compete with Spotify, and Beats

Serial entrepreneur and musician, Jay-Z is expanding in music streaming to take on Spotify Ltd. and Apple Inc.’s Beats.

According to sources, Jay-Z’s holding company S. Carter Enterprises LLC is in the process of acquiring Swedish company Aspiro AB, the maker of the Wimp and Tidal music services, for US$56 million. The bid by Jay-Z, whose real name is Shawn Carter, has led to a 58 percent jump in Aspiro’s share price in Stockholm.

The acquisition becomes the latest business venture for Jay-Z, who has invested in a record label, restaurants, clothing, a talent agency and champagne. He iss one of several rap stars who have leveraged their celebrity to become entrepreneurs. Andre “Dr. Dre” Young sold his Beats headphones and streaming brand to Apple last year for US$3 billion.

Aspiro’s board has recommended that shareholders accept the offer. The finalization of the deal is subject to regulatory approvals.

Aspiro is based in Malmo, Sweden, and runs music streaming subscription services that offer high-fidelity songs, which many audiophiles prefer over MP3s and other formats that reduce quality in the compression process.

In the United States, its Tidal service is available for US$20 a month. Aspiro also operates in some European countries under the Tidal or WiMP brands.