Sources Say BMG, LaFace Deal Could Be In Peril

The reported attempt by BMG to acquire the half of LaFace Records it does not already own appears to have reached an impasse (Bulletin, June 23). LaFace partners Antonio "L.A." Reid and Kevin "Babyface" Edmonds are said to be asking for $130 million for the 50% of the label, while BMG has offered about $105 million, according to sources. Failure to reach an agreement would likely put an end to talk of Reid assuming a key management role at BMG's Arista label, as has been speculated (Bulletin, Nov. 19).
Meanwhile, sources say that Arista president Clive Davis and BMG Entertainment chairman Michael Dornemann are scheduled to meet for a second time next week or early the following week to discuss Davis' role at the label, raising speculation that their reported meeting last Monday failed to resolve their differences.
Sources suggest that if Davis exits and no deal is struck for the rest of LaFace, then BMG's choice to head Arista would be Richard Griffiths, the London-based chairman of BMG U.K. and Ireland and executive VP of central Europe.
--Irv Lichtman, N.Y.


Ayeroff, Harris To Join ARTISTdirect?

Bulletin hears that label veterans Jeff Ayeroff and Jordan Harris are in talks to join ARTISTdirect. The pair left their posts as co-presidents of Sony Music's Work Group label earlier this year (Bulletin, June 23). ARTISTdirect CEO Marc Geiger would not comment.
--Irv Lichtman, N.Y.


Suitors Line Up For MEG

A number of companies have emerged as contenders to buy the New York-based Metropolitan Entertainment Group (MEG), headed by John Scher. They are House of Blues, which bought Universal Concerts earlier this year; Germany's edel Music, which has been on a spending spree; radio conglomerate Infinity; and cable company Cablevision. A deal may be inked this month, sources say.
MEG--which has concert, management, theatrical, and recording arms--has been on the block as part of Ogden Corp.'s decision to divest itself of its entertainment and aviation sectors. Ogden acquired 50% of MEG in 1994, after MEG and PolyGram parted ways. Scher owns 40%; a collection of investors owns the rest. Ogden has retained Goldman Sachs to sell the entire entertainment division. However, Scher's deal allows him to shop MEG separately. While some sources value MEG at slightly less than $100 million, others put its value closer to $50 million.
--Melinda Newman, L.A.


Firms Team Up For Web Test In Japan

BMG Funhouse (formerly BMG Japan) is among companies developing a music test project called the Millennium Big Bang (MBB). Although details are sketchy, MBB is thought to be a new model exploring the potential of marketing entertainment content via the Internet, mobile phones, and satellites. A January launch via a Web site is anticipated.
Content distribution will be SDMI-compliant, according to BMG Funhouse. Other companies taking part include Lycos Japan, Liquid Audio Japan, RealNetworks, and J-WAVE Music.
--Steve McClure, Tokyo


Moss, Alpert Back On A&M Lawsuit

A California Superior Court judge yesterday reinstated A&M Records co-founders Jerry Moss and Herb Alpert as plaintiffs in their multimillion-dollar suit against A&M, PolyGram, Philips Electronics, and Universal Music Group. The judge previously ruled that Moss and Alpert could not act as plaintiffs but that their trust, Old Bull Liquidating, could persist in the suit (Bulletin, Oct. 15).
Moss and Alpert sued A&M, PolyGram, and Philips last year, claiming they were short-changed $5.6 million on their 1989 sale of A&M. The suit was amended in August to allege that Universal violated the integrity of A&M when it consolidated PolyGram's labels following the merger of the majors last year (Bulletin, Aug. 19). Moss and Alpert sought an additional $200 million in damages.
--Chris Morris, L.A.


Warner Revamps Latin Arm

Warner Music International (WMI) has revamped Latin operations in Mexico and the U.S., effective Jan. 1. Inigo Zabala, managing director of Warner Music Mexico, will be president of WMI's Mexico and U.S. Latin operations. He remains based in Mexico, reporting to Warner Music Latin America president Andre Midani. Reporting to Zabala will be Miami-based George Zamora, upped from VP/GM to president of WEA Latina, and Mariano Perez, upped from MD of DRO EastWest Spain to MD of WEA Mexico.
In other news, WMI has promoted Tony Fernandes from regional MD to VP of the ASEAN region, adding responsibility for the Philippines to his current command of Indonesia, Malaysia, Singapore, and Thailand. Based in Kuala Lumpur, he reports to Warner Music Asia Pacific president Lachie Rutherford.


EMI Vids For Launch

EMI Group has inked a deal with Launch Media Inc. to stream the video library of its music division over the Internet. EMI will receive a "small" equity stake in Launch in exchange for giving the Santa Monica, Calif.-based online site access to its library. Other financial details were not disclosed.
Launch entered into a strategic agreement with Sony Music in exchange for equity ahead of its IPO earlier this year.
Shares in Launch gained $1.125, or 6.32%, yesterday to close at $18.94.
--Brian Garrity N.Y.


BMG Direct Site Offering Downloads For Members

BMG Direct has launched a digital download feature on its Web site (www.bmgmusicservice.com) in collaboration with Liquid Audio. Called Download Central, the area will make available more than 50,000 downloadable tracks licensed by Liquid Audio. The service will be open only to the Web site's 2.3 million registered members, says BMG Direct president/CEO George McMillan.
Initial free promotional downloads are available from Creed, Megadeth, Methods Of Mayhem, and others; paid downloads are from such artists as Beck, Emmylou Harris, Mannheim Steamroller, and Sarah McLachlan. The downloads are priced between $1 and $2.
--Don Jeffrey, N.Y.


Jay-Z Denies Involvement In Stabbing Of Label Exec

Jay-Z is claiming he was not involved in the stabbing of music executive Lance "Un" Rivera Wednesday night at the Kit Kat Klub in New York, according to his label, Roc-A-Fella/Def Jam. Police are expected to question the rapper about the incident, which occurred during a record-release party for Q-Tip.
A spokeswoman at Untertainment, the hip-hop firm Rivera founded with the late Notorious B.I.G., says Rivera was stabbed in the stomach and back, then hit over the head with a bottle. He was rushed to St. Vincent's Hospital and released yesterday afternoon. Police at Manhattan's South Midtown precinct confirm that there was a stabbing at the club. No arrests have been made in the case.
Jay-Z was not available for comment, but sources say he is upset with Rivera, who he heard was selling bootleg copies of his album "Vol. 3 ... Life And Times Of S. Carter," due Dec. 28.
--Julie Taraska, N.Y.


Creation Exodus Won't Halt Oasis Set

Oasis is "continuing as planned," says a spokesman, following the announcement that Creation Records head Alan McGee and label co-founder Dick Green will exit the London-based company, probably next June. The news follows reports that Oasis would also depart Creation, to form its own Sony-distributed label. Sony, which owns 49% of Creation, would not comment. Oasis' management company, Ignition, emphasizes that the band remains contracted to Sony and licensed to Creation for the U.K. The album "Standing On The Shoulder Of Giants" is due in February; it will be on Epic in the U.S. and via Sony's SINE infrastructure internationally.
--Paul Sexton, London


Pols Renew Call For Media 'Conduct Code'

Saying they have been ignored by the CEOs of the major media conglomerates since launching an appeal to Hollywood in July (Billboard, July 31), Sens. Joseph Lieberman, D-Conn., and Sam Brownback, R-Kan., are renewing their call for the music, film, and video-game industries to adopt a voluntary code of conduct that would include a commitment to reduce the amount of violent lyrics and images. Lieberman is specifically calling on the CEOs at Sony, Time Warner, Seagram (owner of the Universal Music Group), CBS, Viacom, and Fox to meet with the group. "If you find fault with our request, please tell us and the public why," Lieberman said Wednesday during a Capitol Hill news conference. The group also bought a full-page ad chastising the industries in USA Today. Before adjourning its first session, the Senate Rules Committee rejected a proposal to create a new cultural review committee that would have had subpoena powers (Billboard, Oct. 2).
--Frank Saxe, Airplay Monitor


Charlie Byrd Dies

Jazz guitarist Charlie Byrd died Tuesday of cancer. He was 74.
Byrd was instrumental in introducing Latin sounds, particularly the samba and bossa nova, to American audiences in the '60s. He recorded more than 100 albums during his career, on labels that include Savoy, Columbia, Fantasy, and Concord Jazz.


What's On

Late-night tonight: Fiona Apple (on Letterman), Trisha Yearwood (Leno), Debbie Harry (Politically Incorrect).

Beck guests on "Saturday Night Live" tomorrow.