Company Town : Outpost? Nascent Firm Is in the Middle of It All

Outpost Recordings is just opening for business today, but it’s already in the running to secure the services of superstar rock quartet R.E.M.

The fledgling Beverly Hills label has plenty of competition, including such high-profile players as DreamWorks SKG titan Mo Ostin and top executives from each of the world’s six biggest record conglomerates.

But Outpost’s three founders have unmatched alternative rock credentials, and many expect the new company to flourish--with or without R.E.M. The trio of production maverick Scott Litt, talent whiz Mark Williams and artist manager Andy Gershon has over the last decade contributed to the success of numerous top-selling acts, including Smashing Pumpkins, Nirvana and, of course, R.E.M.

Litt, who has produced five albums for R.E.M., is scheduled to enter the studio with the band in March to produce the last album required under their Warner Bros. Records contract.

“I promise you that these guys will be a serious force in the future of the music business,” said R.E.M. attorney Bertis Downs, who insists that his client will not entertain any contract offer until its deal expires this summer with Warner. “It’s true that Scott and Mark are close friends with R.E.M. But don’t take my word for it. Ask anybody in the business. These guys are extremely talented.”

Whether or not they succeed in luring R.E.M. to their start-up label, Litt, Williams and Gershon are already in the running to sign several hot new acts, including Canadian sensation Hayden.

Litt, 41, has produced or worked on albums by R.E.M., Nirvana, Hole, Counting Crows, Patti Smith and U2. Williams, 35, ran the artist and repertoire division at Virgin Records, where he signed such acclaimed acts as Cracker and Smashing Pumpkins. Gershon, 31, managed Smashing Pumpkins until Outpost was formed.

“We’re not really like some big executive-weighted company,” Litt said. “I’ve worked closely in the studio with lots of career artists, and Mark and Andy have tons of experience in how to discover talent and develop careers. That’s our background.”

Added Gershon: “We’re real hands-on guys who cut our teeth on alternative rock. That’s how we grew up in the business. The reason we chose the name Outpost is our plan is to be on the frontier of what’s happening in the future.”

Geffen Records Chairman Ed Rosenblatt spent four months wooing the trio to sign a five-year multimillion-dollar joint-venture label deal with his West Hollywood firm, which is owned by MCA Inc., a division of Seagram Co. Under the arrangement, Geffen will handle all marketing, promotion and publicity chores for Outpost. The albums will be distributed worldwide through MCA’s UNI sector.

Litt, Williams and Gershon find themselves in illustrious company at Geffen, which is already associated with two of the most promising new start-ups in the business: DreamWorks and Almo Sound.

Esteemed onetime Warner Bros. execs Ostin, Lenny Waronker and Michael Ostin head up the music division at DreamWorks, the entertainment combine founded by Steven Spielberg, Jeffrey Katzenberg and David Geffen. Almo, which has already drawn raves with the new band Garbage, is run by respected veterans Jerry Moss and Herb Alpert, who founded A&M; Records.

Though Outpost, Geffen, DreamWorks and Alamo are all in the MCA family, the labels will still be competing for acts--albeit on a friendly basis.

“Scott and Andy and Mark fit right in here. I see them as the next generation,” Rosenblatt said. “It’s hard to believe that we have all these giants under one roof. I mean, I just came from a marketing meeting this morning, and there were Mark and Andy sitting around the table talking about music with Jerry and Mo and Lenny. I just leaned back in my chair and thought to myself, ‘My God, is this awesome or what?’ ”