There has been plenty of talk in the industry over past few years regarding The Source and their financial woes. Despite their constant denial of financial issues or declining circulation, the magazine’s biggest creditor (multi-conglomerate Textron’s financial arm), has extended an estimated $16 million to them.
Now, there are talks that Jay-Z and a group of investors are considering an attempt to purchase the magazine.
The group of investors is said to include Warner’s Lyor Cohen and Interscope’sSteve Stoute. Word on the street is that Russell Simmons is also interested.
They are not the only group though, Harris Publications (owner of rival magazine XXL) is also interested.
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At this point there has been no word that either Dave Mays or Benzino are interested in selling. The pair own 82% of the magazine. Because of the potential competition, one of the buying groups may attempt to buy their debt from Textron in the event that the magazine goes bankrupt.
There are already concerns from the public that the magazine would go from one conflict of interest to another if the group of label honchos take the reigns.
