Jay-Z: Warner or Epic? Carter Music Group?

Yesterday, Billboard reported Jay was close to a deal at Beyonce’s label, Epic Records.

Today, the NY Daily News claims Hov is headed to a Lyor/Liles/Kyser reunion at WMG.

Jay-Z may be a free agent for now, but he’s in talks to cut a deal with WMG/Atlantic that could make him one of the richest and most powerful men in music.

A well-placed industry source tells us that Jay - who recently left Def Jam as a recording artist (he served as its president from 2004-2007) - has been taking top-secret meetings with his old pals and former managers Lyor Cohen and Kevin Liles. Topics of the hush-hush conversations have included giving Jay his own record label at WMG, tentatively to be called the Carter Music Group.

“Jay knows Lyor and Kevin from back when they all worked together at Def Jam, and he obviously wants to work something out with his friends,” says our insider. “He wants to get the dream team back together. There have been a few whiffs of a reunion in the past, but only now - and very privately - is something finally starting to happen.”

Our source adds, “This is big in hip hop. These are three of the most powerful men in music, who might be working together, and there’s no question the success they’ll have as a team will be huge.”