BMG Considers Naming Reid President of Arista

Bertelsmann Music Group is considering naming LaFace Records co-founder Antonio “L.A.” Reid president of its Arista Records division, home to such acts as Santana and Whitney Houston, sources say. The move comes as the German record conglomerate is in talks to buy the rest of Reid’s LaFace label and is negotiating a new contract with Arista founder Clive Davis, whose deal expires in June. Davis has been running Arista without a successor since he sold his label to BMG in the early 1990s. Sources say Davis walked out of a meeting 10 days ago at BMG’s New York headquarters immediately after BMG chief Strauss Zelnick raised the subject of Reid’s possible appointment. It is unclear what BMG would do if Davis does not approve of Reid’s elevation, but sources say the highly regarded 70-year-old industry veteran is unwilling to accept reduced power or pay at the label. Representatives for Davis, Reid and BMG could not be reached for comment.