Report: Universal Music Offers L.A. Reid A New Deal
Creating Jointly Owned Venture
March 7, 2011 at 4:00 AM (PT)
UNIVERSAL MUSIC GROUP has reportedly made an offer to ISLAND DEF JAM Chairman ANTONIO "L.A." REID, to create a jointly-owned business. BLOOMBERG reports three people with knowledge of the situation said, "REID may be able to take several artists from among those he has signed, who include teen pop star JUSTIN BIEBER, RIHANNA and USHER."
The report claims UMG CEO LUCIAN GRAINGE is reorganizing after the announcement of an early exit of Chairman DOUG MORRIS to SONY MUSIC ENTERTAINMENT (NET NEWS 3/2).
ALL ACCESS reported last THURSDAY (NET NEWS 3/3) that UMG and SONY could see more executives shifting jobs.
Late FRIDAY, the expected exit of RCA/JIVE LABEL GROUP Chairman/CEO BARRY WEISS happened earlier than expected (NET NEWS 3/4). It is unclear as to whether WEISS will show up at his new UMG job before his contract with BMG ends.
THE POST reports, "the discussions with REID have been complicated by the departure of MORRIS. MORRIS' move to SONY potentially gives REID more options, one person said. REID's contract with UNIVERSAL MUSIC expires in 2012."