Madonna, Warner Music Settle Bitter Feud

By NEKESA MUMBI MOODY, AP Music Writer

NEW YORK - Warner Music Group has agreed to buy Madonna (news - web sites) out of Maverick Records, the label she co-founded 12 years ago, to end the legal battle that pitted the music conglomerate against their biggest star.

Madonna's Maverick Records debuted with a flourish and included the multiplatinum debut of Alanis Morissette (news)'s "Jagged Little Pill" in 1995. More recently, the company has scored hits with Michelle Branch (news).

Madonna and partners Guy Oseary and Ronnie Dashev together have owned 60 percent of the company; Warner Music owned 40 percent.

In March, Maverick filed suit against Warner Music and its former parent, Time Warner Inc., claiming breach of contract and alleging that they had misstated Maverick's profits and mismanaged the company, costing Madonna and her partners millions of dollars. (An investment group led by Edgar Bronfman Jr. purchased Warner Music Group last year.)

Warner Music filed a lawsuit of its own against Maverick, claiming the company had lost tens of millions of dollars.

In an agreement announced Monday, Warner Music said it would buy Madonna and Dashev, Maverick's chief operating officer, out of their share of the label. Madonna will have no role in the company, while Oseary will keep his share and stay with Maverick as CEO.

Neither side would discuss the financial terms.

The deal does not affect Madonna's own recording contract with the Warner Bros. record label, which is a part of Warner Music and has been her home since 1984. She's sold more than 60 million records with the label.

"It was an effective way of settling the lawsuit," lawyer Bert Fields, who represented Maverick, told The Associated Press on Monday. "It's clean and equitable, and it doesn't have anything to do with her record contract."

"This new joint venture agreement is clearly a win-win for both WMG and Maverick, and we are pleased that Guy Oseary, one of the most successful A&R executives in the industry, is continuing his relationship with both companies," said Lyor Cohen, Warner Music's chairman.

Oseary expressed optimism about his new arrangement with Warner Music. "The new independent spirit at Warner Music is a perfect fit for a stand-alone label like Maverick," he said.

A representative for Madonna, who's on a sold-out concert tour, did not immediately return calls seeking comment.

Does anyone really still care about this old talentless bore??

twink69 said:

You mean Mariah? No, I don't think they do.

So called chaos!!

I think this is great news for all parties involved.The one thing I didn't want to see was a long,drawn-out court case,which would have stalled the careers of several artists including Madonna.I'm also glad that Madonna basically allowed her lawyers to handle this case,while she concentrated on her career and began a world tour.Maverick will live on as a Warner Bros-distributed label with Guy O'Seary in charge.Reliable sources say that Madonna is planning to sign with Sony,and it's likely that she will start a whole new label.

DavidEye said:

Do you think SONY learned from the George Michael situation and is now actively courting the big name acts such as Prince (ok not in terms of sales but still in terms of influence) and now possibly Madonna!

What would be really cool (but will NEVER happen due to the egos invovled) is that these major artists get together a form a label of their own just like the film stars did back in the early 20th Century when they formed United Artists.

jaypotton said:

That would indeed be a good idea,but from what I've heard,Madonna is already planning another Maverick-like entertainment company.Her partner is likely to be Barry Diller ,one of the richest businessmen in America.They're talking about a new entertainment company similiar to the way Steven Spielberg,Jeff Katzenberg and David Geffen formed Dreamworks.Not sure if this new company will have anything to do with her (rumored) Sony deal.

twink69 said:

Wrong Thread.

GO AWAY.

madartista said:

Someone cared enough to post on this thread.

twink69 said:

if your not interested dont enter the thread bro. and stop bitching maddy.

HITSDAILYDOUBLE.com
MAVERICK MICROSCOPE: Financial terms of yesterday’s litigation-ending settlement between Madonna’s Maverick Records and Warner Music Group were, of course, not disclosed, but reports of various details are cropping up: The L.A. Times reports that WMG will pay Madonna and partner Ronnie Dashev a total of about $10 million for their shares of Maverick, while Guy Oseary (who has agreed to continue to run Maverick from inside Warner Bros. in Burbank) “agreed to sell part of his stake,” upping WMG’s ownership of the label to more than 75% from its previous 40%. The New York Times, citing an exec told about the deal, says WMG’s cost to buy out Madonna and Dashev was “more than $10 million” and that Oseary will retain his stake, but that WMG now owns about 80 percent of Maverick. A third take, in the New York Post, puts Madonna’s payout at about $10 million, with Dashev to be paid an undisclosed amount for her stake, which, with Madonna’s larger piece, amounts to 35% of the label, thus bumping up WMG’s ownership to 75%, with Oseary keeping his 25%. The Post, noting that the $10 million-plus payout for the additional 35% is well below the $200 million Maverick was seeking in its lawsuit, also says all catalog rights remain with Maverick. (6/15a)