We've learned Jay met with Prince's sister, Tyka, and her husband, Maurice Phillips, several weeks ago. The mogul flew Tyka and Maurice to NYC to meet with him.
Sources close to Prince's family tell us ... Jay made an offer of around $40 million. We were unable to confirm the figure from Jay's camp.
But there was a rub. Tyka may be Prince's only full sibling, but she has to get sign-off from all the brothers and sisters, in addition to the trust that is managing the estate.
Word is that JZ is still in the running to get the overall deal for streaming rights ... but it will be very expensive and there are some major players in the game.