Alan McGee's troubled label announce a joint venture with Telstar...

ALAN McGEE’s troubled POPTONES label has just announced a joint venture with TELSTAR that will lead to safety of the battered company’s long-term future.

A letter of intent about the coming together of the two labels was sent to the London Stock Exchange today (February 11). Under the terms of the proposed deal, Telstar will provide financial, marketing and administrative support for a number of artists contracted to Poptones, including Hives, who climbed to Number Seven in the UK album charts yesterday (February 10) with ‘Your New Favourite Band’.

Telstar Music Group Managing Director, Jeremy Marsh, and Director of A&R Pete Hadfield issued a joint statement saying:

“Alan McGee is one of the great music industry visionaries with a track record second to none. With Poptones he has already proved in a relatively short space of time that he retains the ability to discover incredible new talent. This new joint venture adds real muscle to our A&R efforts and provides a great opportunity for the Telstar Music Group to venture into new and exciting areas.”

A spokesperson for Poptones today (February 11) denied that the label was being absorbed simply as an A&R wing of Telstar.

“It’s a very much a joint venture,” he told NME.COM. “They will be using Poptones expertise for talent spotting and Poptones remains as Alan and his three consultants. The long-term future for the company is very bright.”

Terms of the deal are still being thrashed out by lawyers and are expected to be announced soon.