Music mogul LA Reid is partnering with Sony to purchase music a streaming service to rival Tidal...
From Page Six
Sony Music exec L.A. Reid is getting into the streaming business and secretly bidding to buy a large share of online music service Rhapsody.
Industry sources tell us Reid — chairman and CEO of Epic Records, a division of Sony Music Entertainment — has brought in LA-based private-equity investment firm Pegasus Capital Group to help fund the purchase.
One source said Reid “received a waiver from Sony to personally buy into Rhapsody, but industry talk is that Sony is basically going to own a large piece of Rhapsody.”
Ironically, Sony has a reputation for its aggressive stance against streaming services — they have been battling with Tidal over its licensing deal and are asking a whopping $35 million to allow music from its artists, including Beyoncé, to be streamed on Tidal.
