P. Diddy, Def Jam CEO Lyor Cohen Kiss And Make Up, Go Into Business Together

Bad Boy, Def Jam will split the profits on Foxy, 112's future projects.

Weary of fighting in court, longtime friends turned rivals Sean "P. Diddy" Combs and Island Def Jam CEO Lyor Cohen have opted to settle their differences in the boardroom instead. Not only have they kissed and made up over the 112 flap that occurred last February, they've decided to go into business together.

On Thursday (February 20) Combs announced a joint venture between his Bad Boy imprint and Def Jam to put out future releases by R&B quartet 112 and rapstress Foxy Brown.

Last February, 112, citing monetary difficulties and label politics, decided to leave Bad Boy and sign a contract with Def Jam (see "P. Diddy Keeps 112 From Leaving Bad Boy — For Now"). Diddy immediately filed for and was granted an injunction in order to stop them from jumping ship. Since then, the case had been under review by a judge. In the wake of the 112 fallout, P.D. announced he was going to co-executive produce Def Jam artist Foxy Brown's long-talked-about next LP, Ill Nana 2: The Fever, and hinted that he wanted her to come to Bad Boy (see "P. Diddy Weighs Bad Boy Distribution Deals, Eyes Foxy Brown"). However, it seems like all parties have come to an amicable resolution.

"Lyor Cohen and I have been friends for a long time," Combs said in a statement. "Our personal relationship is more important to me than a minor business dispute.  The settlement is mutually beneficial and I look forward to working with him on 112 and Foxy Brown and making sure both artists continue to have successful careers."

"Let's be clear," Cohen declared in the statement, "Sean Combs has proven time and time again that he is creatively better than the rest and even more savvy as an entrepreneur. It's an honor to be in business with him."

Under the terms of the deal, Bad Boy and Def Jam will split the profits on both Brown and 112's future albums as well as release the LPs with a Bad Boy/Def Jam logo. Promotional, marketing and A&R duties of 112's albums will now also be handled by both companies. Bad Boy however, does get to keep the ownership of 112's catalog.

According to their spokespeople, 112 have been in the studio working on a new album, but it's not expected to come out until at least the fall. Foxy's album is due in May. Her first single, "I Need a Man," has already hit the airwaves.

Two weeks ago, Combs inked a new distribution deal for his label with Universal Records (see "P. Diddy's Bad Boy Has Found A New Home").