Elektra Chief Signs New Contract

Sylvia Rhone, the highest-ranking African American woman in the music industry, signed a multimillion-dollar deal Wednesday to continue running Time Warner’s Elektra Entertainment division until 2005.

Rhone’s future has been the subject of much industry gossip in recent months, with competitors privately predicting that she would jump ship in December when her contract expired. While Rhone, 46, was being eyed by several record corporations, the betting was that she would join Seagram’s Universal Music Group, which is run by her mentor, Doug Morris.

Securing Rhone as chairwoman of Elektra is a major coup for Warner Music Group chiefs Bob Daly and Terry Semel, who this week also negotiated a deal to keep its joint venture with Madonna’s successful Maverick Recording intact well into the 21st century. Warner Music, once the industry leader, has fallen behind Universal and Sony in market share and sales in recent years.

Since taking over Elektra in 1994, Rhone has silenced critics by successfully orchestrating a string of rock, rap, R&B; and folk hits by such diverse acts as Metallica, VAST, Pantera, Third Eye Blind, Ol’ Dirty Bastard, LSG, Missy Elliott, Keith Sweat, and Billy Bragg and Wilco.