New unit to develop digital content for cell phones.

Russell Simmons and Def Jam Records are launching a mobile-entertainment unit through a partnership with AG Interactive, the new-media subsidiary of American Greetings.

Under the deal, Def Jam and AG will jointly develop, distribute and market mobile content, focusing on hip-hop-oriented music, films and videogames.

The relationship seeks to couple the Def Jam brand with AG's distribution network of more than 25 mobile carriers. AG currently offers content through a number of mobile brands, including MIDIRingtones, Kiwee and BlueMountain.

"As we continue to extend the brand, we don't feel we are just a record company," says Def Jam president/CEO Kevin Liles. "When you say Def Jam, you think lifestyle."

The Def Jam announcement follows a similar deal AG cut with Univision a month ago for Univision Movil -- a joint venture designed to deliver content targeted to the Hispanic market.