Mariah Carey Signs New Deal

Pop star Mariah Carey, dumped four months ago by EMI Group after a disappointing album, on Wednesday signed an estimated $20-million, three-album deal with rival Universal Music Group, the world’s biggest record company.

It’s been a stressful, yet extremely lucrative, year for Carey. She was paid $30 million by EMI to buy out her contract after the fall release of a poor-selling soundtrack album and last summer she suffered a breakdown.

Still, Carey was the target of a fierce bidding war, and she signed her new deal with Universal’s Island division after turning down offers from several competitors, including Bertelsmann Music Group’s J Records and AOL Time Warner Inc.’s Elektra label.

“I believe everything happens for a reason,” Carey said in a phone interview from her New York home. “This year was a great learning experience for me. A lot of bizarre things happened. But I feel like I’m in good hands now.

“The guys who run Universal paid no attention to all that drama,” she said. “They were so practical and understanding. And now, after it all, for me to have the biggest, strongest music company in the world in my corner, I feel so fortunate.”

Carey’s new pact with Universal will pay her about $8 million for her first album and underscores the improvisational nature of the music business in which high-stake decisions often are based on creative instinct instead of corporate bureaucracy.

Although EMI executives were eager to dump Carey, viewing her as a washed-up and uncontrollable talent, executives at Universal pursued her aggressively. They were convinced that the best-selling female musician in history still has strong commercial potential.

“I never once looked at Mariah as washed up,” said Lyor Cohen, chairman of the Island Def Jam Group. “I’ve always viewed her as this amazing artist--a great singer and a great songwriter. We were dying to sign her.”

Carey is in the studio recording her next album with some of the industry’s hottest producers, including Seven, the Island Def Jam-affiliated production whiz behind recent chart-topping CDs by singer Ashanti and rapper Ja Rule.

Universal, which is owned by French giant Vivendi Universal, will release Carey’s music on her own unnamed Island-affiliated label.

EMI Group dropped Carey in January--less than a year after signing her to a blockbuster four-album contract worth more than $80 million.

But Carey’s first album for EMI, the “Glitter” soundtrack, was panned by critics and sold only about 2 million copies worldwide. Her 1993 album, “Music Box,” sold about 20 million copies for Sony.

The dramatic move by EMI marked the first time a major music corporation cut its losses on an unprofitable superstar pact after one album.

Universal Music Group Chairman Doug Morris said he could personally relate to Carey’s very public struggle with a corporate boss.

Morris was fired a few years ago without notice by Time Warner on the day he was supposed to take over their global music division. The 30-year music veteran had to start over and within several years ended up running Universal.

“To me, this is the Cinderella story of the year,” Morris said. “I can relate to what Mariah went through. I know what it feels like. I took a beating and I just kept walking. She’s going to come back. I can see Mariah scoring a No. 1 hit next year and holding a Grammy in the air.”