Warner Music, Madonna Setting Up Court Fight

Edgar Bronfman Jr.’s Warner Music Group is tuning up to do battle with Madonna.

Warner Music filed a claim in a Delaware court Wednesday asking a judge to rule that it had met its commitments in its deal with Madonna’s Warner-financed label, Maverick Recording Co. Madonna is expected to respond in Los Angeles today with a lawsuit alleging breach of contract, sources said.

The court clash follows a breakdown in talks over the future of Beverly Hills-based Maverick, which launched as a partnership with Warner Music in 1992. At issue is whether Warner will continue to finance the venture, which is home to such acts as the Deftones and Alanis Morissette, after the expiration of the partnership deal at the end of the year.

For months, Madonna and her business partners tried to sell their 60% stake in the label to Warner Music and its then-parent Time Warner Inc., but the two sides have failed to agree on a price, sources said. Madonna and her representatives at one point valued their share of Maverick at about $60 million, while Warner Music had set a far lower price, sources said.

Unable to strike a deal with Time Warner, the superstar tried again with Bronfman after he and his investment team agreed to buy Warner Music from the media conglomerate for $2.6 billion in November. Sources said Madonna also made overtures to buy out Warner but has been unable to come to terms over its 40% stake.

Representatives for Madonna and Warner Music declined to comment.