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Capitol Records recently merged with Virgin Records In the U.S. as a part of a massive restructuring by parent company, EMI.
The newly formed record label, known as the Capitol Music Group, will be headed by Virgin's chief executive Jason Flom, who's been promoted to Chairman and CEO. Flom will report directly to EMI Group CEO Eric Nicoli.
"The music business shows exciting growth potential, but the environment remains extremely challenging," said Nicoli via a statement. "In order to thrive and meet the demands of a rapidly evolving and dynamic music market, we must re-think our operations, not only to make them efficient, but also more effective and focused on creative excellence. By bringing Capitol and Virgin into one label group, we will be better equipped than ever to promote and nurture artistic talent. We remain strongly committed to developing artists in America in all genres as this is a key repertoire source for the world, and to that end, we will maintain our A&R focus and keep a presence in both LA and New York. This structure will also allow us to further build our digital capability."
Capitol Records' chief executive Andy Slater stepped down following earlier announcements that company would begin a $217 million restructuring which also led to the departure of both former president Alain Levy and vice chairman David Munns.
R&B and hip-hop acts affected by the merger include Faith Evans, Corrine Bailey Rae, LeToya Luckett, Chingy, Purple Ribbon Allstars, Sleepy Brown, Beenie Man and Bizzy Bone among others.
As previous reported by SOHH, Jermaine Dupri stepped down as the president of Virgin Records' urban division in 2006. According to the NY Post he is in talks with Island Def Jam. There is no word on what position he is vying for.
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