Sources
say LaFace Records label founders Antonio "L.A." Reid
and Kenneth "Babyface" Edmonds are going to be selling
the remaining 50% of their company. Billboard reports that Bertelsmann
Music Group (BMG), which distributes LaFace through its Arista
label, is said to be in negotiations to purchase the label for
$125 million. BMG already owns half of LaFace. BMG declined to
comment on whether it is seeking full ownership of the imprint;
however, the company likely has the first option to purchase the
remaining interests. If the deal closes, one scenario has BMG
offering a senior creative role to Reid. It is unclear what sort
of personnel changes or reorganization would happened at LaFace
if and when it is sold. LaFace’s roster includes Outkast, Goodie
Mob, Toni Braxton, Usher, and TLC, among others.