Clive Davis Statement

NEW YORK, Nov. 17 /PRNewswire/ -- The following is a statement from Clive Davis: "I would like to make it clear that I have no plans whatsoever to retire. At age 66, I am absolutely at the peak of my powers producing the Carlos Santana and Whitney Houston albums, each of which is generating spectacular multi-platinum sales. Arista itself has never been more successful in both sales and profits. BMG has called Arista its 'crown jewel' for many years and that crown has never shined more brightly, with more new artists breaking and more established artists reaching new peaks than ever before.

"I will be weighing BMG's offers to me which involve both preserving my legacy and, ironically, major support of a new public media company that I would be forming. I am also very moved by the overwhelming outpouring of support from my artists, the officers and employees of Arista and those in the industry. I fully intend to live up to my contract ending June 30, 2000, and celebrate by far the greatest year in our twenty-five year history, culminating in the two-hour network NBC special in the spring of 2000 called 'Arista's 25 Years of #1 Hits.'"

SOURCE Clive Davis
CO: Arista; BMG
ST: New York

Music Mogul Dethroned?
by Julie Keller
Nov 17, 1999, 12:45 PM PT

He may have nabbed the likes of everyone from Janis Joplin to the Artist to Whitney Houston, but the parent company of Arista Records may be sending its legendary founder a simple message: We will not always love you.

Reports are flying that Clive Davis, the record label's longtime CEO, is out--and LaFace Records' cofounder Antonio "L.A." Reid is in.

Tuesday's Los Angeles Times says Babyface's longtime cohort may take over when Davis' Arista contract expires in June, though today's New York Post says the honcho flip-flop could happen as early as next week under pressure from Arista parent company BMG Entertainment.

Davis, for one, adamantly denies the report.

"I would like to make it clear that I have no plans whatsoever to retire," he said in a statement released today. "I will be weighing BMG's offers to me which involve both preserving my legacy and, ironically, major support of a new public media company that I would be forming. I fully intend to live up to my contract ending June 30, 2000."

Reid's camp has not yet responded to calls, but the Atlanta-based music mogul told the Post that he "talked with Strauss [Zelnick, head of BMG Music] about moving to New York."

The shakeup comes smack dab in the middle of BMG's negotiations to snap up LaFace Records, the label behind music phenoms TLC, Toni Braxton and Usher.

The German conglomerate bought Arista from Davis in the early 1990s and is apparently getting sick of having a 66-year-old exec helming the label without a No. 2 man to eventually take his place.

"You have to look at it in the context of the corporate culture. The execs in Germany believe in a distinct succession plan as a matter of corporate responsibility," an insider told the Post. "Clive is well over 60, has been running the company for 25 years, and has still not named a successor."

Other insiders told the Times that Davis walked out of a meeting last week when Zelnick brought up the potential appointment and swear the music veteran refuses to accept a reduced role or paycheck at the chart-topping label.

Most recently, the record mogul has been responsible for the resurrection of Santana. The classic-rock band's 1999 album, Supernatural, logged three straight weeks at No. 1 this fall and remains a top seller. Before that, Davis wooed the contract-leery Artist to Arista for his most recent effort, Rave Un2 the Joy Fantastic.

In his statement, Davis said he was "absolutely at the peak of my powers."

CLIVE TAKING DIVE AT ARISTA
By ALLYSON LIEBERMAN

Legendary music man Clive Davis is out at Arista Records, The Post has learned.

Rising record-industry star L.A. Reid is expected to be named president and CEO of the famous label -- possibly as early as next week, according to a source close to the negotiations.

"It's not a done deal yet, but it should be clear by Monday," the source said.

"It all rests on what kind of deal Clive gets from BMG and what part he wants to play in the business if someone is brought in over his head."

Davis, who is in London and couldn't be reached for comment, is said to be negotiating a new role with BMG, but the exact deal has yet to be finalized.

The latest development follows yesterday's industry-rocking story in The Post that Strauss Zelnick, head of Arista parent company's BMG Music, was trying to push the 66-year-old Davis out of the top job.

Davis "has a confidentiality agreement with BMG and won't talk until his deal is signed," said one music insider.

Reid, 43, is the co-founder of LaFace Records with Kenneth "Babyface" Edwards. LaFace, a joint venture with Arista, produces such Grammy-winning acts as TLC, Toni Braxton and Usher.

Reached at LaFace headquarters in Atlanta, Reid, 43, said he "talked with Strauss about moving to New York," but he would not elaborate further on any discussions.

One insider said Davis' looming departure comes down to a colossal culture clash between Arista and BMG's German parent company, Bertelsmann.

The German media conglomerate mandates that every top executive and division head retire by the age of 60.

Bertelsmann's own former chairman, Mark Woessner, was required to retire two years ago, and was replaced by 46-year-old Thomas Middelhoff.

"You have to look at it in the context of the corporate culture. The execs in Germany believe in a distinct succession plan as a matter of corporate responsibility," the insider added. "Clive is well over 60 -- has been running the company for 25 years -- and has still not named a successor."

But it doesn't appear that anyone -- even at BMG -- is buying the company spin.

"Everyone at BMG sees Strauss for what he is: out for himself," groused one company insider. "His naked ambition is so apparent to all of us."

Zelnick has always had an uneasy relationship with other music execs because, unlike most of his rivals, he has never produced a record or worked in the studio.

And some insiders questioned Zelnick's motives in letting artist-friendly heads like Davis go.

Zelnick is also currently waging a legal battle with another Clive -- Clive Calder and his Jive Records -- over who has control of bestselling act 'N Sync.

BMG Considers Naming Reid President of Arista
By CHUCK PHILIPS

Bertelsmann Music Group is considering naming LaFace Records co-founder Antonio "L.A." Reid president of its Arista Records division, home to such acts as Santana and Whitney Houston, sources say. The move comes as the German record conglomerate is in talks to buy the rest of Reid's LaFace label and is negotiating a new contract with Arista founder Clive Davis, whose deal expires in June. Davis has been running Arista without a successor since he sold his label to BMG in the early 1990s. Sources say Davis walked out of a meeting 10 days ago at BMG's New York headquarters immediately after BMG chief Strauss Zelnick raised the subject of Reid's possible appointment. It is unclear what BMG would do if Davis does not approve of Reid's elevation, but sources say the highly regarded 70-year-old industry veteran is unwilling to accept reduced power or pay at the label. Representatives for Davis, Reid and BMG could not be reached for comment.

Arista's Clive Davis Denies Retirement Rumors

Arista's Clive Davis Denies Retirement Rumors Despite the recent buzzings that BMG Entertainment wants Arista Records President Clive Davis to step down, Davis says has "no plans whatsoever to retire."

In a statement issued today, the music executive -- who has lead Arista for almost 25 years -- claims that he "fully intends" to live up to his contract with the company, which will end on June 30, 2000.

The statement is in response to recent reports that BMG is trying to work out a succession plan with Davis that will include L.A. Reid, who co-founded the highly successfully LaFace Records with Kenneth "Babyface" Edmonds. A source also told Billboard that BMG parent Bertelsmann in Germany would like to see a succession plan.

Furthermore, Davis -- who recently produced albums by Carlos Santana and Whitney Houston for Arista -- added, "I am absolutely at the peak of my powers ... BMG has called Arista its 'crown jewel' for many years and that crown has never shined more brightly.

"I will be weighing BMG's offers to me which involve both preserving my legacy and, ironically, major support of a new public media company that I would be forming," he continued.

Both BMG Entertainment president/CEO Strauss Zelnick and Davis were in Europe and could not be reached for comment.

A two-hour special feting Davis' silver anniversary with the label, "Arista's 25 Years Of #1 Hits," is scheduled to air next spring on NBC.