I don't think they were going broke every year is what I am getting at.
WC, Warren G, Redman, LL, DMX....all these guys 'saved' def jam from going under. It sounds cool. I doubt it is true. Especially since a company that big could borrow money.
Borrowing money is what got them in trouble in the first place since their first distribution deal Russel and Rick Rubin had with Sony/CBS in the 1980s when they had Public enemy and the beastie boys...
all those advances just kept eating away at their equity....by 98 at the time of the sale to Universal ...Polygram already had a 60 percent stake in the def jam brand.......
and within the next fukking year....Universal already ponied up the 100 million to buy that 40% share that russell sold them
a sad day for the "culture" of hip hop
Seagram in Talks to Buy Remaining Stake in Def Jam for $100 Million
Seagram in Talks to Buy Remaining Stake in Def Jam for $100 Million
Music: A deal for the 40% of the black record label the company doesn't own could be struck next week, sources say.
February 19, 1999|CHUCK PHILIPS | TIMES STAFF WRITER
Seagram Co. entered advanced talks this week to pay about $100 million for the remaining 40% of Def Jam Music Group that it doesn't already own, sources said.
Although several elements of the deal are still unresolved and there is a remote chance that the pact could unravel, sources predicted that an agreement is likely to be consummated as early as next week. Def Jam--currently the hottest record label in the music business--was previously 60% owned by PolyGram, which Seagram purchased in December for $10.4 billion.
Last month, Seagram's Universal Music Group restructured its U.S. record division and combined Mercury with Island and Def Jam to form one of its two major outposts on the East Coast. Sources said Seagram has plans to turn Def Jam into the black music arm of the newly restructured unit, where Def Jam Chief Executive Lyor Cohen is expected to take on expanded duties. Label founder Russell Simmons will retain his title as chairman of Def Jam.