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Clive Davis Launches New Label With BMG
Arista Records founder Clive Davis--whose tenure with the label officially ended two months ago--and Arista parent company BMG Entertainment have entered into a joint venture to form a new label dubbed J Records. BMG and Davis are touting the deal as the largest record company start-up ever.
Though no financial details were released, the 50-50 partnership has been valued between $150 million and $175 million in various published reports. BMG will distribute the label and is backing the venture, but claims it will not be involved in the day-to-day management of the venture.
The upstart label’s initial roster will include established acts Deborah Cox, LFO, Next and Q-Tip, Reuters reported.
Also signed are O-Town--the subject of the ABC-TV series “Making the Band”--as well as new artists Olivia, Alicia Keys and Jimmy Cozier, according to Billboard Bulletin.
Davis lost his position as president of Arista, a label he started 25 years ago, after a six-month power struggle with BMG Entertainment. Producer Antonio "LA" Reid was named Davis’ successor in May, and he took over as the label’s president and CEO on July 1.
Charles Goldstruck, a former executive vice president and general manager at Arista, has been named president and chief operating officer of the new label. Other executives will be named in the coming weeks.
The first release from J Records (which takes its name from Davis’ middle initial and the initial of many members of his family) is expected to hit stores in October, and will likely be by the new artist Olivia.