Another Hollywood Records chapter – the acquisition of Mammoth Records in 1997
Disney was trying to rescue its beleaguered music division, in particular Hollywood Records, which after eight years and what is said to be an investment of $150 million, had never scored a major rock hit.
Last month the label had to recall an album by an obscure rap act, Insane Clown Posse, on the same day of its release, after Mr. Roth and other red-faced executives became aware of its obscenity-laced lyrics.
Lisbeth R. Barron, a senior managing director at Bear, Stearns, who advised Mr. Faires, placed a value on Mammoth of $50 million to $60 million, by one of several calculations.
”I don’t think anyone bid for Mammoth based on current financials,” Ms. Barron said. ”There’s a nonquantitative number assigned to just getting access to Jay, what he can do to find unique talent.”