Doug Morris to Lead Seagram Music Division

One day after signing an agreement to buy PolyGram for $10.4 billion, Seagram Co. designated Doug Morris the future head of the combined music entity--the largest record company in the world.

Morris, a former songwriter and highly regarded industry veteran, will take over as chairman and chief executive of the record giant, to be named Universal Music Group, following approval of the deal by government regulators--a process that could take five months or more.

The news of Morris’ promotion on Tuesday is expected to be followed today by the announcement that Jorgen Larsen will become chief of the international division, sources said. Other top positions in Seagram’s future music hierarchy are slated for Universal executives Bruce Hack, Melvin Lewinter and Zach Horowitz, the sources said.

There has been much industry speculation in recent days that Sylvia Rhone may leave her post as chairwoman of Time Warner Inc.’s Elektra Entertainment division to join Morris’ new inner circle. But Rhone, a former protege of Morris, is under contract to run Elektra until the turn of the century and has not been offered a job at Universal, sources said.

Morris’ emergence as arguably the most powerful figure in the music business follows a path with some twists.

After rising to one of the top executive jobs at Time Warner’s music division, he was fired just hours before he was scheduled to be promoted to global music chief.

Morris, 59, started over in 1995 when Seagram asked him to launch his own label and later to head the entire music division.

He is credited with transforming Seagram’s once-dormant record division into a domestic rock powerhouse with the addition of his own Universal label and Interscope Records. Morris will continue to report to Universal Chairman Frank Biondi Jr. and Universal President Ron Meyer.