Company Town : In Turnabout, Giant’s Azoff May Stay

Giant Records Chief Irving Azoff is in promising discussions to extend his contract with Warner Music Group, after threatening to defect earlier this year in a battle with senior management.

Sources say that Azoff would remain on board through 2000 under the deal, in which Warner would also buy the remaining 50% stake in his successful Giant Merchandising company. The veteran executive declined to comment on the specifics, but confirmed that he hopes to stay with Warner, which is also half owner of Giant Records. He said he’s encouraged by the company’s new management.

“That really got me to sit still for awhile,” Azoff said this week. “It showed me there was light at the end of the tunnel . . . that this was a place that could accomplish what needs to get done.”

Azoff is close to outgoing Warner Bros. Records Chairman Mo Ostin, but was formerly at odds with Warner Music Group Chairman Robert Morgado, who oversaw the labels. Azoff was infuriated earlier this year when Warner Music Group refused to let him release the Eagles reunion album because of unresolved litigation. Azoff manages the Eagles. The corporate office also nixed a deal that Azoff was pursuing to distribute Rap-A-Lot Records. Warner Music, for its part, reportedly felt the Giant Records joint venture was too heavily weighted in Azoff’s favor. At one juncture, Morgado was said to be demanding a massive payout for Warner’s share in Giant.

Those strains led to widespread speculation that Azoff would move his business elsewhere, possibly to Bertelsmann Music Group or one of the major studios without a music division. But it turned out that Morgado’s internal problems extended beyond Azoff. Morgado’s efforts to reorganize the powerful music group led to threats of an executive revolt, which was resolved when Morgado turned over most domestic responsibilities to his chief lieutenant, Doug Morris.

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Azoff called Morris’s appointment the “turning point” in his deal discussions. He said he’s also high on Danny Goldberg, who is replacing Ostin, and also comes from the management world. “If there has to be a successor to Mo, he’s an excellent choice,” Azoff said. “Between Danny and Doug, I’ve got 45 years of personal relationships and I’m hardly that old.”

Both sides are said to be optimistic about a deal being concluded by early next year. Warner Music Group declined formal comment on the discussions. But one source close to the company said of Azoff: “This is not someone you want to lose, as long as the deal works.”

While Warner is said to be negotiating a tougher deal with Azoff this time, sources concede that the company is anxious to keep Giant in the fold--partly because of expectations that the Eagles and/or Don Henley will sign with Giant. The label, which is distributed by Warner, also has a deal to release a Steely Dan album culled from recent live shows and including two new tracks. Giant’s other hit acts include Big Head Todd and Clay Walker.

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Renewing his deal with Warner would cap off a strong year for Azoff, a shrewd deal maker who’s also one of the most colorful music industry figures. The Eagles’ “Hell Freezes Over” reunion tour is one of the top-grossing acts of 1994. It resumes Jan. 9 in Tacoma, Wash., and is scheduled to conclude in May. The group is mulling further U.S. and overseas dates.

Giant Merchandising is coming off a similarly strong year, with revenue of nearly $100 million from tie-ins with groups such as The Eagles and Metallica. As part owner of the Irvine Meadows concert venue, Azoff is also said to be in joint operations discussions with one of the other major Orange County venues, the Glen Helen Blockbuster Pavilion.

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Sony Pictures employees got a signed letter from film chief Mark Canton this week inviting them to special screenings of two upcoming Sony movies--”Little Women” and “Mixed Nuts.” The screenings are being held on the Culver City lot tonight as a “special gift” to employees.

“Mixed Nuts” is a comedy from TriStar Pictures starring Steve Martin. Columbia Pictures’ “Little Women” is based on the classic Louisa May Alcott novel. In case people have other plans, the invite lists the exact running time of each film.

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As they approach the new year, Jeffrey Katzenberg, Steven Spielberg and David Geffen still haven’t announced a name for their new studio, though they have struck a potentially lucrative TV deal with Capital Cities/ABC and hired two senior executives--Helene Hahn and Ronald Nelson.

One reader, Lillian Rae of Oxnard Shores, suggests they turn to the dictionary. Rae points out that the plural of genius is Genii. Based on their reputations for business smarts she suggests naming the new company Genii Studios.

There has been no response so far from the Big Three. But Katzenberg may be playing around with some ideas. Sources say that the restaurant staff at the Four Seasons Hotel in West Los Angeles is under orders to place a scratch pad and pen at Katzenberg’s regular breakfast table each morning on the off chance he needs to record a thought or doodle.