German executives at Bertelsmann, BMG’s parent, have approached music legend Clive Davis about buying out his stake in his music label J Records, The Post has learned.
If a deal can be reached with Davis, BMG would then move to fold J Records into its RCA label to save overhead costs and give Davis a broader management role at RCA, sources tell The Post.
Sources say BMG could pay as little as $20 million for the half of J Records it doesn’t already own.
J Records was formed as a joint venture between Davis and BMG about two years ago, and boasts five-time Grammy winner Alicia Keys. Luther Vandross, Busta Rhymes and Olivia also call J Records home.
But that price would value the label at much less than the reported $150 million pumped into the venture in 2000, reflecting both the dearth of successful acts beyond Keys and the general doldrums afflicting the entire music industry.
A spokesperson at J Records referred all inquiries to BMG. A spokesman at BMG said: “These rumors, along with speculation surrounding our Jive Zomba negotiations, have been around for some time. BMG has held no discussions about changes to the management of J, Arista, RCA or any of its U.S. labels.”
In 2000, Davis, 69, was pushed out as head of BMG’s Arista label, which he founded about 25 years ago.
The move created an uproar in the music industry, because of Davis’ spectacular track record and his many heavyweight friends.
Since then, top management at both BMG and parent company Bertelsmann who were responsible for his ouster have themselves been booted.
A deal to return triumphantly to BMG would be sweet for Davis.
Just months after he was ousted, Davis and BMG announced the formation of J Records. Arista has boasted such successful acts as Whitney Houston, Barry Manilow and the Grateful Dead.
Davis, a member of the Rock & Roll Hall of Fame, is invariably described as a music legend and is credited with discovering artists such as Bruce Springsteen and Janis Joplin while at Columbia Records in the 1960s and 1970s.
It is unclear what Davis’ new role would be at RCA. RCA Music Group, which includes RCA Records, BMG Canada and RCA Nashville, is currently run by chairman Bob Jamieson.
SWEET REVENGE
Clive Davis was thrown to the curb by his bosses at BMG – but now he may get the last laugh. His rise, fall and rise:
1975
Hot time: Davis founds Arista Records, where he signs and produces artists like Barry Manilow, the Grateful Dead and Whitney Houston.
July 2000
The boot: Arista, now controlled by Bertelsmann’s BMG, shows Davis the door – but BMG agrees to launch a new venture with Davis, dubbed J Records. Among the label’s new acts: Alicia Keys.
October 2002
Back on top: With Bertelsmann chief Thomas Middelhoff gone, new management wants Davis back. Now it’s in talks to buy out the label, wrap it into its RCA division and bring Davis back on board.