Jay-Z and Beyonce to Start New Label

“It’s a done deal. Jay-Z already has Beyonce and Matthew Knowles on board,” said the source. “She’ll be finishing up her contract [with Sony], and I expect that she’ll sign on to the new label shortly afterwards.”

Beyonce is scheduled to complete her final album under a deal with Sony this fall. The final of her three albums of the deal (B'Day and B'Day Deluxe) will be a live album.

It’s not clear which major label will house the new label but the insider says it’s not going to be Island Def Jam.

“Jay-Z brought the idea to Def Jam first but they thought he was asking for too much money,” said the source. “Now they’re shopping the deal around to the other majors and to Apple [the creator of iTunes] who is very interested in doing business.

The insider also says the prospect of Jay-Z and Beyonce starting their own label has the people over at Def Jam terrified however, this story is still developing. What you think?