His Interscope Gamble Pays Off

Doug Morris, co-chair and CEO of the Atlantic Group, is also a big winner in the Interscope success story. As the only executive in the music industry willing to gamble on Jimmy Iovine and Ted Field, he has increased dramatically his already rising stock in Time Warner’s $4-billion music division.

Through a series of acquisitions, Morris--a former songwriter, whose credits include the Chiffons’ 1966 “Sweet Talkin’ Guy”--has transformed a floundering Atlantic over the last three years into a jewel in the Warner Music Group. Atlantic’s global revenues are to top $700 million, up 40% over 1992, sources say.

Insiders now place him first in line to succeed Robert J. Morgado as head of the Warner Music Group if Morgado moves up the corporate ladder, as predicted.

Entertainment mogul David Geffen praises Morris for his ability to discover and groom talented young executives, including Danny Goldberg, who brought in Stone Temple Pilots at Atlantic, and Sylvia Rhone, who signed En Vogue at EastWest. Morris has also made profitable deals with half a dozen independent record labels, including Rhino and Matador, as well as non-music ventures A* Vision Entertainment and Time Warner Audio Books.

“Atlantic was on its ass before Doug began to rebuild it,” says Geffen. “He’s made some real smart bets.”