Antonio 'LA' Reid Named President and CEO Arista Records

Co-Founder of LaFace Records and Grammy Award-Winning Producer to Take The Helm at Revered Record Label

Kenneth 'Babyface' Edmonds Inks Joint Venture Deal with Arista to Form New Record Label

LaFace Records To Be Consolidated with Arista Records


NEW YORK, May 2 /PRNewswire/ -- Antonio "LA" Reid has been named President and CEO, Arista Records, it was announced today by Strauss Zelnick, President and CEO, BMG Entertainment. The appointment is effective July 1, 2000.

Reid, a Grammy award-winning producer, most recently served as Co- President, LaFace Records, which he co-founded in 1989 with Kenneth "Babyface" Edmonds as a joint venture with Arista Records. Under Reid's leadership, LaFace has grown into one of the music industry's premier record labels, dominating both the pop and R&B charts with top musical artists such as TLC, Toni Braxton, Usher, Tony Rich, Pink and OutKast, among others. The label has sold more than 50 million albums worldwide.

"Antonio brings to Arista an inspired track record as a businessman, Grammy award-winning producer and deeply committed record man," said Zelnick. "As Co-Founder and Co-President of LaFace Records, he has created a music powerhouse and helped develop some of today's top pop and R&B artists."

Added Michael Dornemann, Chairman of BMG Entertainment, "Antonio is a music executive of rare talent and passion. His unique understanding of the creative process combined with his business savvy and entrepreneurial vision make him the ideal person to lead Arista."

Prior to founding LaFace Records, Reid garnered 33 Number One singles and three Grammy Awards with Edmonds, as the producing/songwriting duo behind such chart-topping musical acts as Whitney Houston, The Jacksons, Bobby Brown, Boyz II Men, Paula Abdul and Sheena Easton. Further honing his business skills, Reid completed the prestigious 12-week Advanced Management Program at the Harvard Business School in 1999, the only music business executive chosen among a group of top executives from a variety of business disciplines from around the world.

"To be given the honor and challenge to lead Arista, a label that is home to such legendary talent and a rich legacy, is an extraordinary opportunity," said Reid. "Having worked closely with Arista during the past 11 years, I have experienced first hand the incredible level of quality and excellence that Clive Davis has established. I am also thrilled to have the opportunity to continue working closely with Michael Dornemann and Strauss Zelnick."

Reid succeeds Arista's founder, Clive Davis, a legendary voice in the music scene. Mr. Davis has not only had a profound effect on the music industry, inspiring and nurturing many of today's top artists, he has also become an influential force in the entertainment industry as a whole. In addition, Mr. Davis has made a name for himself as a generous philanthropist and a foremost leader in the battle against AIDS, among other causes. His many industry honors include the 2000 Trustees Grammy Award for Lifetime Achievement and induction into the Rock and Roll Hall of Fame as the only non- performer.

In a joint statement, Dornemann and Zelnick said, "With Arista, Clive Davis has set a standard for achievement and innovation in our industry. His unique combination of creative intuition and business acumen has developed some of the greatest musical acts of our generation."

While LaFace will be consolidated with Arista Records, the label will retain its own imprint. The company's headquarters will remain in Atlanta, Georgia.

In a related development, it was announced that famed songwriter/producer/ singer Kenneth "Babyface" Edmonds has entered into a joint venture agreement with Arista to form a new record label, name to be announced. Edmonds will serve as the new company's Chief Executive Officer, effective July 1, 2000. Terms of the agreement were not disclosed.

Edmonds, a 10-time Grammy winner, has also had 119 top-10 R&B and Pop hits, 47 Number One R&B hits, 51 top-10 Pop hits, including 16 Number One Singles, and single and album sales exceeding 100 million. He has written and produced songs for scores of pop music superstars, among them Whitney Houston, Mariah Carey, Madonna, Eric Clapton, Michael Jackson, Toni Braxton, Celine Dion, Aretha Franklin, TLC, Mary J. Blige, Brandy, Boyz II Men and 'N Sync.

"We are thrilled to be partnering with Kenneth Edmonds on this exciting, new endeavor," said Zelnick. "Kenny brings to this new label a peerless reputation for musical brilliance and a remarkable understanding of the music market. He is a prolific force in our industry."

"Kenneth Edmonds is an esteemed member of the BMG family of musical artists," said Dornemann. "Kenny's accomplishments as a songwriter, producer and singer are testament not only to his extraordinary musical talent, but also to his passionate drive and vision as a businessman."

"I am pleased to continue my close working relationship with my friend and colleague Antonio Reid, for whom I have the utmost respect," said Edmonds. "With my new venture, BMG and Arista are allowing me to continue doing what I love most: making music. The opportunity to work with extraordinarily talented artists and make the best music possible is exhilarating."

Over its 25-year history, Arista has consistently led the industry on an annual basis with the highest percentage success ratio of record releases to both chart hits and RIAA certifications. To date, the label has received a total of 725 gold, platinum and multi-platinum album and single certifications. This year, Arista also received 14 Grammy Awards. Among its artists are Whitney Houston, Aretha Franklin, Carlos Santana, Sarah McLachlan, Kenny G and the Eurythmics.

BMG Entertainment is the $4.7 billion worldwide music and entertainment division of Bertelsmann AG, one of the world's leading media companies, with annual revenues of $16.4 billion. BMG owns more than 200 record labels in 54 countries, including Arista Records, RCA Records, Ariola and Windham Hill. BMG has been a leader in using the Internet to bring fans closer to their favorite artists. In addition to establishing GetMusic, an online content and commerce joint venture, BMG's online presence includes more than 30 wholly owned music & lifestyle Web sites around the world, and strategic marketing agreements with and key investments in leading online companies ARTISTdirect, Riffage.com, Egreetings Network, Listen.com and Eritmo.com, among others. BMG also owns the world's largest music club, one of the world's largest music publishing companies, and one of the world's leading compact disc and cassette manufacturing companies. Bertelsmann's North America interests also include the Random House Inc. book publishing group; and the Gruner + Jahr magazine publishing group, which includes McCall's, Parents, Family Circle and YM magazines, among others.

SOURCE BMG Entertainment

CO: BMG Entertainment; Arista Records

ST: New York  

Arista names LA Reid as president, replacing Clive Davis

By Sue Zeidler

LOS ANGELES, (Reuters) - In a long-anticipated move, rap executive Antonio "LA'' Reid was named president and chief executive of Arista Records on Tuesday, succeeding legendary hitmaker Clive Davis, who had been embroiled in a highly public feud with the label's parent BMG.

BMG said it was still in discussions with Davis, 67, over his future, while the showman who turned Arista into a major music industry force with stars like Whitney Houston, Aretha Franklin and Carlos Santana, said he was considering his options.

Reid, a Grammy-winning producer, most recently served as co-president of LaFace Records, which he co-founded with Kenneth "Babyface'' Edmonds as a joint venture with Arista. LaFace, which has dominated the charts with artists like TLC, Toni Braxton and Usher, will now be consolidated with Arista and Reid will take the helm on July 1, BMG Entertainment President and Chief Executive Officer Strauss Zelnick said.

"Antonio brings to Arista an inspired track record as a businessman, Grammy award-winning producer and deeply committed record man,'' Zelnick added.

A spokesman for BMG, the $4 billion entertainment arm of Bertelsmann AG , said it was still in discussions with Davis regarding his future. In a statement, Davis said, "I regret the imposition of the Bertelsmann retirement age policy, it's time now to turn to a new and vital chapter in this fast changing world of music.''

He added, "This new chapter couldn't come at a better time, and we will decide among the very substantial offers we've received to begin business in September.''

One source close to BMG denied any firm offers had been made, although another source said BMG had offered Davis close to $200 million to support a new proposed venture.

Davis has also been talking with other labels, like Seagram Co. Ltd.'s Universal Music, Sony Corp.'s Sony Music and Time Warner Inc.'s Warner Music, which is merging with EMI Group Plc.

Davis' future has been in limbo since a battle erupted in November, when Zelnick let it known that he planned to replace Davis with Reid. Davis' contract expires in June.

Many of Arista's artists were outraged and pledged support for Davis. BMG then began talking with Davis to avert a crisis.

Davis will leave Arista amid its best sales year ever, with $425 million in the first nine months of its fiscal year, and as it celebrates its 25th year with a star-studded TV special on May 15th.

"Having worked closely with Arista in the past 11 years, I have experienced first-hand the incredible level of quality and excellence that Clive Davis has established,'' Reid said.

"With Arista, Clive Davis has set a standard for achievement and innovation in our industry,'' Zelnick and Michael Dornemann, chairman of BMG said in a joint statement. In a related development, BMG said Kenneth ``Babyface'' Edmonds entered into an agreement with Arista to form a new label. Edmonds will serve as the new company's chief executive officer, effective July 1, 2000. Terms were not disclosed.

Reuters/Variety

LA Reid Officially Replaces Clive Davis At Arista

Arista Records has officially announced the appointment of LaFace/Arista Records exec Antonio "LA" Reid to the top position at the company effective July 1, replacing legendary veteran Clive Davis. Davis, in turn, has issued a statement saying he expects to begin an as-yet-unspecified new venture in September.

Producer-songwriter LA Reid is the co-founder of LaFace along with Kenneth "Babyface" Edmonds. The company was created as a joint venture with Arista and hosts such artists as TLC, Toni Braxton, Usher, Tony Rich, Pink, and Outkast.

LaFace will now retain its own imprint, and the company's headquarters will remain in Atlanta. However, Edmonds will be getting his own, yet-to-be-named label in another joint venture agreement with Arista.

Arista, under Davis, has scored hits with Santana, Whitney Houston, Sarah McLachlan, Alan Jackson, and Monica. The company also distributes Puff Daddy's Bad Boy label. As previously reported, Davis is being ousted in a well-publicized forced retirement move by the label's mother company, BMG Entertainment, a division of Bertelsmann AG.

"Though I regret the imposition of the Bertelsmann retirement age policy," Davis wrote in his statement, "it's time now to turn to a new and vital chapter in this fast changing world of music."

Davis added, "I am fully prepared for and excited by the unique challenge of creating an unprecedented instant major record company consisting of the top executive and creative team in the business."

As for which company will provide an umbrella for Davis's new venture, Davis alluded to having received "substantial offers," but his statement offers up no other information. However, industry insiders told MTV News that Sony, specifically record company head Tommy Mottola, is relentlessly pursuing Davis, and still in the picture is a possible deal with BMG Entertainment that might even see Davis appointed BMG's Chairman. Offers from the Universal and EMI groups are said not to be under serious consideration.

Issues currently under discussion reportedly involve the status of Davis' severance package (thought to be close to $150 million), the status of potential and existing litigation over Davis' departure, and future financial considerations (Sony is thought to be offering close to $200 million for Davis' services). Another mitigating factor involves which artists may or may not tag along with Davis if and when he goes elsewhere.

Davis is currently on an extended vacation and is not expected to be available until early June.

-- Sorelle Saidman