LILES FOLLOWS LYOR OUT THE DOOR

Def Jam President Kevin Liles reportedly resigned yesterday as President of the UMG label after the two sides failed to agree on a contract extension, according to a report in today's N.Y. Post.

Liles' resignation follows the exit of mentor Lyor Cohen, who was Island Def Jam Chairman/CEO.

Cohen left last month to become head of Warner Music's U.S. recorded music business.

Universal has reportedly closed on a deal with ex-Arista boss Antonio "L.A." Reid to take over for Cohen.

Liles said: "It has been an honor to work with [UMG ChairmanCEO] Doug [Morris] and [Interscope Geffen A&M head] Jimmy [Iovine]—and the entire team at Universal. I have immense respect for L.A. (Reid). Brand building is my life and music is in my blood. I look forward to what's next."

Sources say the talks between Universal and Liles broke down over money. Liles will remain on the job for the next three weeks.

Many in the industry expect Liles and current Island President Julie Greenwald, whose deal is also up, to follow Cohen to Warner.

Liles is currently working on a book about hip-hop management, which will be published in 2005.

"We wish Kevin the very best in all his future endeavors," said a Universal spokesperson.