How DMX and JAY-Z Helped Def Jam’s $100M+ Sale

In 1998, Def Jam was in negotiations with Polygram and Universal Music Group to sell the company. Def Jam was Initially offered $50 million for half of the company, but Russell Simmons and Lyor Cohen turned it down.

The valuation was based on revenue (not EBITDA), so Def Jam asked its two biggest artists to release more music.

Lyor Cohen offered DMX a $1 million bonus to drop his second album just six months after his debut album. Jay Z also released his Vol 2… Hard Knock Life in a short time span.

Def Jam sold a then-record high $176 million in billing that year, and secured a nine-figure deal that brought it into the major record label system.

We did a full breakdown on Def Jam. I was joined by @Zack Greenburg. There’s a link to the episode in the comments below.

Enjoy the full episode on Trapital here: https://youtu.be/fXVKDrMPY2s?si=XcQ_uSKER5z8CxBe

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