Death Row Records could be under new ownership, thanks to a newly signed deal with -MediaTechnics Corporation.
AllHipHop.com has learned that MediaTechnics has signed a letter of intent to purchase the Global Music Group today (August 26) to provide funds to purchase the assets of the legendary label.
GMG originally won the rights to the Death Row catalog, but failed to pay the $24 million need to consummate the deal by the deadline of July 29.
Once MediaTechnics provides the funds needed to complete the deal, it will attempt to gain control of all of Death Rows assets, which include previously and unreleased material by the late Tupac Shakur, Dr. Dre, Snoop Dogg and other material from the labels catalog of master recordings.
The acquisition of GMG is "a landmark turning point" for MediaTechnics, according to the companys, president Richard Wilson.
"Together with our subsidiaries, the Live Network and CRD Technologies, the prospects of co-branding, licensing and new product development are astounding," Wilson stated. "Were driving hard to lock in all of the complicated pieces of this puzzle necessary to successfully conclude this remarkable deal."
The status of Death Row, which was founded in 1991, has generated headlines since the label and its founder, Marion "Suge" Knight, became embroiled in lawsuits criminal convictions and other legal disputes over the past decade.
As a result, Knight sought bankruptcy protection for himself and the label in April 2006.
An independent valuation of the bankruptcy estate completed last month placed the value of the label's assets at $32 million.
"We are delighted by the prospects that this imminent transaction could bring to our two companies and believe the outcome, both financially and creatively, can be an incredible force" GMG president Susan Berg added.
Despite several factors potentially affecting the completion of the Death Row transaction, MediaTechnics Letter of Intent from a lender to fund the transaction bolsters the companys chances of placing the winning bid for Death Row.