P. Diddy Turns Down Warner, Says Offer Was Undervalued

Hip-Hop and Fashion entrepreneur Sean “P. Diddy” Combs recently turned down an offer from the Warner Music Group to purchase his Bad Boy recording label.

The proposal was initially offered to acquire Combs' share of the imprint, which is presently being distributed through Universal until

early next year.

The New York Times reported the deal was worth $30 million. Warner representatives refused comment but sources close to negotiations set the deal closer $60 million.

According to sources, Universal is lukewarm in response to re-negotiating their contract

with Bad Boy in light of the label’s stagnant performance in 2004.

Since then, Combs openly exercised his options by courting several labels over the last couple weeks.

"While [Mr. Combs] appreciated the offer from Warner Music Group, he felt the amount

undervalued both him and his Bad Boy Records label," a source that wished to remain anonymous told AllHipHop.com.

Sources went on to say that Combs' decision to veto the deal with Warner was inspired by “business, creative and personal reasons” noting that the mogul wished to retain 100 percent of his business, which produced the likes of Ma$e and The Notorious B.I.G. and is set to release projects by P. Diddy, B5, Black Rob and Boyz N Da Hood in 2005.

Others speculate that Combs may be at odds with Warner Music CEO and former Island Def Jam head Lyor Cohen over sour deals the two encountered with one another in the past.

"Acquiring Bad Boy and doing a 50/50 joint venture would have given Warner the urban presence they needed," the source continued. "And with Warner being set up to go public, the partnership would have created a powerful impact on Warner’s stock offering."

Sources went on to say "Though Warner Music and Mr. Combs could not come to terms at this time, we are hopeful that Mr. Combs is still open to further discussion."

As of press time, phone calls to the Warner Music Group in regards to the matter were unreturned.