By 1992, despite recent multi-platinum selling releases from Public Enemy, and EPMD, Def Jam ran into severe financial troubles and was faced with folding. However, in 1994, PolyGram purchased Sony’s 50% stake in Def Jam Recordings — subsequently bringing the label into its fold. Following PolyGram’s purchase, Def Jam distributed the Violator Records-signed artist Warren G’s Regulate... G Funk Era album, which went triple platinum and brought much-needed revenue to Def Jam through its distribution deal with Violator.
PolyGram acquired an additional 10% in Def Jam Recordings in 1996, further strengthening its ownership of Def Jam. Shortly thereafter, Rush Associated Labels was renamed Def Jam Music Group. The label remained profitable as its veteran star LL Cool J released his successful album Mr. Smith in 1995. The label later signed Foxy Brown, whose debut album Ill Na Na became a platinum seller in 1997