Young Money Entertainment may soon be no more, an internet rumor claims.
This week, reports emerged that the recording company — which has acts like Drake and Nicki Minaj — has fallen into a financial free-fall and will be seeking bankruptcy protection.
The rumor came via MediaTakeOut, which cited Young Money executives.
“MediaTakeOut.com just got wind of a BLOCKBUSTER RUMOR – people VERY SENIOR in Young Money are saying that the label may be going BANKRUPT. We’re told that the label, and it’s head Lil Wayne are coming under EXTREME FINANCIAL DISTRESS – mostly because of lawsuits and the IRS.”
The report went on to say that Lil Wayne is trying to find a way to turn things around financially for Young Money, but that it might not be enough. If the company goes belly up, it means that talent like Drake and Tyga would have their contracts torn up and allow them to go to the highest bidder.
The report noted, “Weezy is the HOMIE and so is YMCMB so we really hope they can turn things around. But according to our snitch, if they don’t work QUICKLY – they may have to file for BANKRUPTCY PROTECTION and liquidate their assets. And the companies biggest assets, Drake, Nicki, and Tyga’s contracts.”
Young Money Entertainment has seen some changes at the top in the last few years. Lil Wayne stepped down as the label’s president in 2007, giving the position to Cortez Bryant. But within two years there was another change, and Mack Maine took over as president.
The label has seen quite a bit of success, including a number of top 10 hits. Young Money has also been quite active recently, releasing a compilation back in March titled Young Money: Rise of an Empire.
Officials from Young Money Entertainment have not responded to the reports of the label’s bankruptcy troubles.