Grand opening… grand closing. Universal Music Group has announced today that Shawn “Jay-Z” Carter has stepped down from his post as president of Def Jam Records.
The rapper, 38, served as CEO of the historic hip hop label since 2005. He will continue to work as a solo artist under the Roc-A-Fella / Def Jam umbrella, Reuters reports. Universal did not give a reason for his departure.
Last year, the rapper and entrepreneur denied he was leaving his executive seat, telling MTV: "Everything is good. I know there's been some rumors I was leaving Def Jam. I'm not leaving Def Jam. I signed on for three years, so I don't have any plans to move on. I love working with [Island Def Jam Chairman] L.A. [Reid], I love working with [Island President] Steve [Bartels], I love [Universal Chairman and CEO] Doug [Morris]."
Jay-Z’s contract technically ends January 2008. Earlier this month, the New York Daily News released a story speculating the rapper’s time at the label was dwindling. "He wanted big, big money that was way out of sync with the realities of today's record business," an anonymous source told the paper, concerning contractual negotiations between Jay-Z, L.A. Reid, and Doug Morris. Both Reid and Morris are reported to have found Jay’s salary demands “excessive.”
"Everybody knows he's not around the office much,” the source added. “Everybody at Universal loves him, but they can't justify paying him the money he wants when so many people have been laid off."
During his time at the label, Jay-Z was responsible for bringing in several talents, including Ne-Yo, and Rihanna. Following news of his departure, Jay-Z left a statement stating it is “time for me to take new challenges.”
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