*Jay Z just expanded his business portfolio with the addition of a subscription streaming service…in fact, the rival of popular streaming service Spotify.
According to Billboard, the mogul has purchased Aspiro, the Swedish parent company of two subscription streaming services, WiMP and TIDAL. The offer of 464 million Swedish krona, or $56.2 million, represents a 59.1 percent premium over yesterday’s closing share price.
The proposed acquisition was announced by Aspiro early this morning and has already been accepted, but is still subject to shareholder approval, Billboard reports.
Trading of Aspiro stock was up 76 percent on the news this morning, to 0.08 per share.
The proposed acquisition is being made via the mogul’s Project Panther Bidco, a subsidiary of his S. Carter Enterprises. A spokesperson said Panther’s “strategic ambition” for Aspiro is to expand and up-scale its technology and services.
Streaming continues to displace purchased music downloads, with track and album download sales dropping 12.5 percent and 9.4 percent, respectively, in 2014. Compare that to streaming, where SEA (streaming equivalent albums, or 1,500 streams of a record) were up by 56 million last year.
Despite the fact that no on-demand streaming company has yet to turn a profit — it’s clear which way the wind is blowing, and Jay Z now has a kite to play with.