GIANT RECORDS CUT DOWN TO SIZE

Warner Music Group is expected to close its purchase of the 50% of Giant it doesn't already own by the end of the week and essentially let all label executives go except for A&R, including Jeff Aldrich. WMG will cherry-pick groups from the company and place them on labels in the group. Azoff has beefed up his management company over the last six months, picking up such clients as Seal and Christina Aguilera, and many of his longtime staff, among them International and Communications head Susan Markheim, will follow him to that venture.

Various reports had put the purchase price in the $25-50 million range, though other senior level executives at the conglom put the figure closer to $10 million.

While many have wondered as to why WMG CEO Roger Ames would peel the cash to purchase Giant when his mantra has long been to grow marketshare, it is believed Ames is looking to strengthen the bottom line by reducing costs. Giant reportedly has an annual $12 million overhead.

Ironically, the move comes just as the label is running as well as it ever has under GM Larry Jacobson and veteran promo head Bob Catania. Hard-rockers Disturbed is now up to 1.1 million sold O.T.C., and Steely Dan is coming off a surprise best-seller and a Grammy for "Album of the Year."