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The Century City-based creative artists agency said Monday it is acquiring ICM Partners for an undisclosed price, in a deal that could transform Hollywood’s talent agency industry.
The transaction, which is subject to regulatory approval, would reduce the number of top-tier agencies to three dominant players: CAA, WME and United Talent Agency. ICM is considered the fourth largest talent company.
The sale – the biggest talent agency deal since WME bought IMG in 2014 – would give CAA and ICM the size and scale to better compete with Beverly Hills entertainment juggernaut Endeavor, which owns the talent agency WME and has grown aggressively. The company recently launched a successful IPO.
“It is sure to turn everything upside down in Hollywood,” said Tom Nunan, professor at UCLA’s School of Drama, Film and Television of the acquisition. “It’s asking the question, it’s bigger necessarily better.
The deal gives CAA access to a lucrative publishing business and major ICM clients, including “Grey’s Anatomy” showrunner Shonda Rhimes, actor Samuel L. Jackson, director Spike Lee and Ellen DeGeneres. .
CAA already represents top talent, including showrunner Ryan Murphy, actors Reese Witherspoon and Tom Hanks, as well as musical artists such as Ariana Grande.
Once the deal is done later this year, all of those customers are expected to be CAA branded.
“We believe that the combined efforts, energies and resources here enhance opportunities for clients across the board,” CAA President Richard Lovett said in an interview. London-based ICM’s sports representation agency Stellar Sports will help CAA grow its roster internationally, Lovett said.
CAA’s purchase of smaller ICM partners comes against a backdrop of broader consolidation in the entertainment industry, as media companies expand their offerings of film and TV content for streaming services. The move to streaming has led to an explosion in demand for content.
“What is happening now is another seismic shift in the industry,” Stephen Galloway of Chapman University’s Dodge College of Film and Media Art. “Whenever one giant part of the industry changes, another part of the industry inevitably changes too.”
The talent representation industry is also changing dramatically, as industry priorities shift. While movie stars and top directors were once the kings of Hollywood talent, the power has shifted to writer-producers and showrunners who can secure nine-figure deals with the media. streaming companies and services.
ICM, for example, represents mega-producers including “Bridgerton” creator Shonda Rhimes, “Breaking Bad” creator Vince Gilligan and “The Handmaid’s Tale” creator Bruce Miller. part B less of the business, ”Galloway said. “What matters today are people who can launch franchises and series, a content empire.”
The acquisition comes as talent agencies have come under increasing pressure during the pandemic as COVID-19 concerns have canceled or delayed live events, concerts and Hollywood productions. Over the past year, many companies, including CAA and ICM, have taken cost-cutting measures, including pay cuts and layoffs. In the summer of 2020, CAA laid off 90 agents and executives and laid off 275 employees, while ICM Partners laid off 40 of its support employees.
CAA also recently filed a lawsuit against its insurance company to cover some of its losses due to COVID-19.
The deal comes after the agencies lost a deadly battle with the Writers Guild of America, whose members fired their agents for alleged packaging costs and affiliated production companies, which the authors said were disputes of interest. The major agencies accepted concessions on the packaging, which had been a big money generator. The purchase of CAA is a potentially powerful statement for Hollywood and the agency industry. Endeavor, owner of WME and Ultimate Fighting Championship, staged a first public offering earlier this year, raising more than $ 500 million and further improving the status of super-agents Ari Emanuel and Patrick Whitesell. CAA, backed by the private equity firm TPG, may grow fat in preparation for its own IPO, analysts said. While Endeavor has grown by expanding into businesses such as MMA and professional riding, CAA has remained primarily focused on the representational industry, which may make the discourse clearer to investors. These agencies can still be extremely lucrative, and lucrative enough that we can position ourselves for an IPO, ”said Galloway. paid as the business model changes. CAA client Scarlett Johansson sued Disney in July, claiming the studio had hijacked her from box office bonuses by putting her “Black Widow” movie on Disney + for $ 30 alongside its theatrical release. Bryan Lourd vocally hit back at Disney after the company released a dazzling statement in response to Johansson’s lawsuit. “They shamelessly and falsely accused Ms Johansson of being insensitive to the global COVID pandemic, in an attempt to make her appear as someone they and I know she is not,” Lourd said. at the time. Now Lourd, who has spoken more and more about talent relationships with studios, will carry more weight as the deals continue to move. “If you want to fight Scarlett Johansson, you’ve got a lot more people against you,” Galloway said. “While the studios have become these huge steroid pumped bodybuilders, you have another steroid pumped bodybuilder in the ring with you. “
Hollywood talent agencies are also recovering from a deadly battle with the Writers Guild of America over practices such as investing in productions and charging fees for packaging shows. For more than a year, agencies, including ICM Partners and CAA, were unable to work with WGA editors until an agreement was reached.
Under an agreement the two companies made with the WGA last year, agencies are limited in their ability to diversify due to a restriction on ownership in production companies. In addition, by the end of June 2022, they will no longer be able to charge new packaging costs. To comply with the deal, CAA recently reduced its stake in Hollywood production company wiip to around 20%.
Already, a union that represents the players says it will closely monitor CAA’s acquisition of ICM Partners.
“We will carefully review this combination of two historic talent agencies to ensure that performers benefit from the deal and are not disadvantaged by it,” said SAG-AFTRA National Executive Director Duncan Crabtree -Ireland, in a statement.
Industry insiders say they expect the acquisition to lead to staff cuts, but on Monday, executives said they were still in the early stages of their merger.
“Once all the legal work is done and we get all the legal pieces approved to start really bringing the business together, we can better manage it all,” Lovett said.
Chris Silbermann, CEO of ICM Partners, will join CAA’s board of directors.
Founded in 1975, International Creative Management has grown into one of the industry’s premier talent agencies. Silbermann joined ICM in 2006 with the acquisition of Broder Webb Chervin Silbermann Agency, where he was the youngest partner and forged a reputation as a sharp and ambitious agent.
In 2012, Century City rebranded itself as ICM Partners after Silbermann led the charge to partner it up, with agents buying out private equity investor Rizvi Traverse Management.
In 2019, the company received funding from Crestview Partners and began an expansion campaign. Last year, ICM bought out Stellar Group – making it a major player in sports representation – acquired the live music booking agency Primary Talent International and took a minority stake in Swedish company Albatros Agency.
ICM Partners had recently come under scrutiny, after many former employees described the mistreatment of their managers to the LA Times. The newspaper’s investigation brought to light numerous allegations of harassment and other misconduct against women by several male officers and executives.
The ICM has stated that it “does not tolerate harassment, intimidation or any other inappropriate conduct. HR investigates all reports received and deals with each one with appropriate disciplinary action up to and including termination.
Times editor Stacy Perman contributed to this report.
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