Warner Music, For Sale, Deep in Losses, Throws Lavish Grammy Party

I guess Warner Music Group wants to go out with a bang. Steeped in losses, with few hit records and a reputation for being almost out of business, the struggling record company decided to celebrate the Grammys in style. Their second in command, Lyor Cohen, threw a lavish, expensive party after the Grammy Awards on Sunday night at Soho House on the border of West Hollywood and Beverly Hills. And I do mean expensive: Cohen and Warner Music rented out the entire facility, not just a small part of it.

And what did they get for their money? Just about no celebrities. Publicists checking names at the curb said their biggest “get” was WMG recording artist Bruno Mars. There was mention of an appearance by Beyonce and Jay Z. That was it. Overheard outside, the checker discussed the lack of almost any staff in Los Angeles, and the expected sale of the company now that Cohen and owner Edgar Bronfman Jr. had driven it into the ground.

Warner Music was once home to James Taylor, Bonnie Raitt, Carly Simon, Linda Ronstadt, Neil Young, Little Feat, The Grateful Dead, Led Zeppelin, Randy Newman,the B52s, Joni Mitchell, Paul Simon, Madonna, America, Rod Stewart, and dozens upon dozens of acts on Atlantic Records, Sire, Elektra, etc. Now it’s all boiled down to Bruno Mars.

By contrast, Sony Music–very successful, with hits–had a smallish cocktail gathering at the bar in the Beverly Hills Hotel. Tony Bennett and Clive Davis were seen, but mostly it was for execs and nominees. “It was fairly boring,” said a guest. Mostly attendees discussed the imminent departure of Rolf Schmidt Holtz, exiting leader of Sony Music. He won’t be replaced until July 1st by Doug Morris. “The company is a mess,” observed one insider.

Universal Music, the industry leader, had no official party. But Jimmy Iovine, head of UMG’s Interscope Records, had a 25th anniversary party for the company in a tent erected on the roof of the Hotel L’Ermitage in Beverly Hills. Lady Gaga, Justin Bieber, and Emimen were expected. So were hundreds of people who planned to fill a limited space. Iovine, who is now an advisor to “American Idol,” has been giving parties at his Holmby Hills mansion all week.

EMI Music, also for sale, and in play, with perilous financial outlook, tossed a massive get together at Milk Studios in Hollywood. The gala was low on celebs but thick with guests who received $200 earbuds from Ultimate Ears (one of my favorite products–I bought a pair a couple of years ago), as well as mountains of food from various specialty trucks. I did run into Tara Reid, the actress, who was sober and fun. She has a lot of projects in the works, but made no mention of “The Big Lebowski 2.” Reid often gets lampooned in the New York press, but she’s actually smart and funny. She needs someone to write a good sitcom for her.

The best post Grammy party was right in the Staples Center, thrown by AEG Live and hosted by their leader, Randy Phillips. The only singer I ran into was R&B star Anthony Hamilton. But there were lots of execs, the deejay was great, and the food was tasty but not over the top. It was nice to see Jerry Greenberg, who worked at Atlantic Records in its heyday with Ahmet Ertegun and Jerry Wexler, then ran Michael Jackson’s MJJ Records in the 80s and 90s. He reminisced with Frank DiLeo, Jackson’s manager, and Joyce Moore, who worked for the Jacksons in the late 70s and early 80s.

Also seen at the Staples Center during the Grammys, in the Chairmen’s Room: Nicole Kidman and Keith Urban, Heidi Klum, Seth Rogen, Pauley Perrette, Joel Katz, Greg Phillinganes, Paul and Jane Schindler, Tom Corson. The subject of conversation from everyone literally: Lady Gaga ripping off Madonna. And how great Mick Jagger was in the Grammy show. More to come…

PS I dedicated my whole Grammy week coverage to the late great Michael Klenfner. I really missed Michael’s wit and biting insight about the business this weekend. He was a sweet giant, and I sure hope no one ever forgets him.