The hip-hop star was not happy when his label created Island Records Urban Music Group in February, which is run by Jermaine Dupri, the boyfriend of Janet Jackson.
A source told the New York Daily News, "There isn’t room for two kings at one label. Why would Def Jam bring in another power-hitter urban guy?"
Jay-Z is in talks to join Columbia Records, the label of his girlfriend, singer Beyonce Knowles. Jay-Z is responsible for several artists who have become stars, including his 19 year-old protege, Rihanna, who signed with Def Jam in 2004.