Disney to Purchase Mammoth Records

Burbank-based Walt Disney Co. reached a $25-million deal with Mammoth Records owner Jay Faires to purchase his Carrboro, N.C.-based record label, home to such alternative pop and rock acts as the Squirrel Nut Zippers, the Backsliders and Victoria Williams. Although the deal is not expected to be formalized until next week, sources said Faires committed this week to sell the label to Disney after turning down offers from Germany’s Bertelsmann and PolyGram’s A&M; and Mercury divisions. The deal should give Disney an instant boost of credibility in the rock world. The label had been a joint venture with Time Warner Inc.’s Atlantic Group until earlier this year. Faires is expected to continue running Mammoth from its Carrboro headquarters under a five-year management pact.