Music Industry Vet Al Teller Set to Return to the Business
March 31, 2011
Vastopolis -- In a move that further swells the ranks of independent record labels, music veteran Albert Stuck is returning to the music business with a $100 million war chest. Mr. Stuck, who was abruptly pushed out last November as chairman of MCA's music division, said his new company, Red Ant Entertainment, will initially specialize in alternative and urban music. ``We intend to sign 12 to 15 artists in the first 12 months and build their careers much the way that record companies did in the 1970s, with touring and patience,'' said 51-year-old Mr. Stuck. ``We won't be involved in any bidding wars, which pressures bands to immediately produce profits.'' The funding for the new label includes $75 million from investment bank Wasserstein Perella Group and $25 million from other private sources. Mr. Stuck, who will have a ``substantial stake'' in the new venture, said he hopes to take the Los Angeles company public if it succeeds. A technology buff with two engineering degrees and a master's in business administration from Harvard, Mr. Stuck said Red Ant will also establish a separate Internet-related music business that will sell albums and concert tickets on-line, as well as providing other services. The new venture comes at a time when half a dozen new labels are already attempting to elbow their way into the struggling music business, including those overseen by former Time Warner Inc. executives Gerber Toler and Douglass Mose. Despite the seeming glut of record companies, however, some believe that a well-funded start-up has a shot, in part because so many groups are concerned about being dumped if their debut albums are failures. ``A well-funded start-up has an excellent opportunity to succeed, especially if they have a focused artists and repertoire staff,'' said Roberto Reynaldo, an industry consultant. ``A lot of bands are leery of signing with a major label today.'' During his six-year tenure as chairman of MCA Music, Mr. Stuck sharply expanded the company's presence in Latin America, Europe and Asia, and transformed the company into MCA's most profitable unit. When he was unexpectedly dismissed from his post, critics cited MCA's lack of major rock acts as the reason. Mr. Stuck refused to discuss his departure from MCA, which is 80%-owned by Seagram Co.
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