It's a good thing that Lyor Cohen sold out with Russell Simmons for $130 million in 1999. Probably the best decision they made.
I think that once Def Jam was owned by Universal, Lyor did what he could for personal gain while fulfilling his contractual obligations. After all, who's a top dog at Warner Music now: Lyor Cohen (he's not the Island/Def Jam man anymore!).
The TVT suit against him for $30 million was a bullet that was personally aimed at Cohen, and I bet it was because of some things he did to people he ousted, who then backed up TVT with information. That situation was dirty.
Lyor came out OK, though, even with a fraud charge.
I think LA Reid is looking for a Cash Cow. He will have to fabricate a good pop/R&B crossover act to do that. He needs the sale of something with huge crossover to bring some money back. Needless to say, the common equity in Def Jam has devalued a lot. I think the massive promo and spending that built up Def Jam prior to the sale, was
because Russell Simmons and Lyor Cohen wanted to make the sale with their equity at a high.
It also shows you how ludicrous Irv Gotti is for saying his company is worth $60-100 million. He only wishes he could get rid of the liabilities incurred by Murder Inc.
Def Jam is like Rome... too much internal politics, while the empire crumbles from the outer edges.
I would oust a lot of middle management and slash operating costs. Oh, and tell their promotions to stop using label money at strip clubs.
-Sincerely,
God