In the fall of 1997, Czinger merged the label with Dallas Austin's Rowdy Records to create Freeworld Entertainment.
In September 1997, a month after Austin and Czinger worked together, former Volcano flagship artist Tool attempted to dissolve ties to the label by claiming that Freeworld had failed to exercise its option to renew the band's contract.
[4] To make matters worse, Austin removed himself from the label after Freeworld made considerable investments in his artists.
[2] Czinger attempted to recall his previous success by changing the name of the label back to Zoo Entertainment, however, the damage was already too severe.
[8] Some of the first artists on the newly formed label were Detroit vocal quartet Vega[9] and preteen R&B vocalist Sammie.