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Warner in talks with Giant
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February 23, 2001: 2:19 p.m. ET
Grammy awards give Giant Records clout in Warner Music talks
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NEW YORK (CNNfn) - Warner Music Group is in talks to expand its relationship with Giant Records, which could include a buyout or keeping its existing stake in the record label, a person familiar with the situation told CNNfn.com Friday.
The discussions have been going on for months, the source said, and a deal is expected between the parties. Warner Music, a unit of AOL Time Warner (AOL: Research, Estimates), which also owns CNNfn.com, has discussed buying the 50 percent of Giant it doesn't already own but the firms could choose to keep their relationship as is, the source added.
 The discussions are said to be past the early stage and the parties are confident a deal will be clinched. Irving Azoff, Giant's founder and CEO, is well liked by Warner, a source said, and the record label now has more clout since its recent Grammy awards.
"I am always negotiating with Warner but there is nothing imminent," Azoff said.
Giant has two years left in its five-year joint venture with Warner but Azoff will likely sell the label if he cannot expand it, industry sources said.
Warner Music declined to comment.
A Grammy surge
Burbank, Calif.-based Giant Records scored a major coup last Wednesday when rock band Steely Dan beat out Eminem for the album of the year award. Steely Dan also snagged awards for best pop performance and top pop vocal album.
"It certainly helps to have one huge Grammy winner," an industry source said. "They've had a good year."
Press reports said Giant Records could be worth as much as $1 billion, but industry sources said that price tag is far too high.
Giant Records is home to lesser-known acts such as Disturbed, the Pat McGee Band and i5. Azoff also manages such star acts as Christina Aguilera, Seal and the Eagles.
Shares of AOL Time Warner lost $1.60, or 3.56 percent, to close at $43.30 Friday. 
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