MCA, GEFFEN TO MERGE

Lew Wasserman must be rolling over in his grave.

Universal Music Group today began a massive West Coast restructuring that will eventually see MCA Records folded, along with its legendary name, into Interscope Geffen A&M’s Geffen Records under label President Jordan Schur.

Called the worst-kept secret in Hollywood for some weeks now, the move to consolidate MCA and Geffen was expected, with Schur the odds-on favorite to oversee the combined operation. However, an official announcement of the combining of Geffen and MCA as well as Schur’s appointment have yet to come.

A preliminary statement from IGA reads, "We have begun a restructuring process at MCA Records. Further details about the structure and staffing of the label will be announced shortly. We are grateful for the contributions made by the employees affected by these changes."

Schur is expected to address the combined company within the next couple of days.

Early reports indicate the initial wave of layoffs is taking a heavy toll on MCA staffers. Among the hardest hit by the restructuring was MCA’s A&R department, which was gutted save for Joel Mark, who works with Sigur Ros.

Rumors of cuts at the company have abounded since former MCA President Jay Boberg stepped down in mid-January. IGA Chairman Jimmy Iovine has been overseeing MCA since Boberg’s departure.

Meanwhile, insiders say the combined MCA/Geffen operation will maintain a full-service A&R, marketing and promotion team, with back-office functions such as accounting and business affairs handled by a "Center Company" being established to service all IGA labels.

Schur and Iovine are reportedly reviewing MCA’s roster and are likely to trim it, but insiders say major acts including Mary J. Blige and Blink-182, as well as MCA’s deal with Drive-Thru Records, will be an important part of the new operation.