By Roger Friedman

The whole Arista Records/Clive Davis fiasco — and what else can we call it? — is coming to a head.

Davis was ousted essentially from his position as the founder and president of Arista by Bertelsmann Music Group's Strauss Zelnick and Michael Dornemann. His last day will be June 30, the day his contract runs out. Representatives for L.A. Reid, the head of LaFace Records and the new Arista chief, are already measuring for new carpet.

So what will happen with Clive? My very good sources tell me that Sony Music will be home to Clive's new label and media company. What an irony! Sony owns Columbia Records, the label which fired Davis in 1974 — and forced him to start Arista!

Other labels wanted Davis, particularly Universal Records and Doug Morris. But Universal, which is owned by Seagram's, is probably for sale. And their buyer — or new partner — is most likely ... Bertelsmann! So that's not going to work out. Warner Music, for whom Davis would be like a badly needed blood transfusion, is getting ready to merge with Capitol/EMI. Warner is in its usual state of chaos, so I don't think that will happen.

The next question is: What about Whitney? Putting aside her recent public problems, Houston is still a megastar and always will be. Her career has been a collaboration with Davis for over 16 years. A couple of years ago, Houston traded what's known as her "key man" clause in her contract — that she could leave Arista if Davis did — for more money.

However, between Davis' backers and Whitney's own fortune, the pair could simply buy out Houston's Arista contract. Also, with a two CD greatest hits album scheduled for release on May 16, Whitney is now in a position to take at least a year or more off. She's got two major movie commitments that have to be dealt with, among other issues. No label can force a performer to record — it just doesn't happen. So it's conceivable that Houston will leave Arista with Davis, or shortly thereafter.

Another irony: Sony, anticipating the departure of Mariah Carey, would be most pleased to welcome Whitney at the same time. Carey, long wooed by Elektra Records' Sylvia Rhone, is definitely looking for a new home. Her ex-husband, Tommy Mottola, the head of Sony, won't be sorry to see her go, believe me.