UTA Private Equity Move: Battle for Scale with CAA and WME

Amid the turmoil in Hollywood, as entertainment giants invest in live streaming efforts and try to strike a balance between subscription, advertising, theatrical releases and other business models, talent agencies are on the rise, betting that demand for content and top talent. growing.

And all of this is supported, at least in part, by private equity cash bets that concerns about “maximum content” are overblown. On July 18, UTA disclosed an investment by the Swedish company EQT. UTA CEO Jeremy Zimmer said he and his leadership team chose EQT as an investor because they believe the company will “really help us grow while protecting our culture.”

The UTA investment, in turn, comes after CAA, led by Brian Lord and Richard Lovett, completed on June 28 the acquisition of ICM, which is led by Chris Silberman and forms an entertainment giant backed by its majority owner. , TPG. And Endeavor, owned by WME and managed by Ari Emanuel, went public last year after securing investment and support from Egon Durban’s Silver Lake.

All agencies used private equity funds to ride the wave of content as streaming services proliferated while traditional distribution models like cable continued to demand new material.

With private equity struggling to invest in all parts of Hollywood (on July 19, Gerry Cardinale’s RedBird Capital became the latest to announce a deal to buy casting software company Talent Systems), it makes sense that talent agencies serve as connectors. Content companies, talent and distributors will be the focus of your investment strategy. Endeavor is using the money to expand into sports, awaiting the takeover of sports betting analytics company OpenBet, while CAA has leveraged its power by gobbling up the ICM.

The UTA was not shy. Last year, it acquired Michael Kassan’s MediaLink consultancy, boutique agency Curtis Brown Group and data analytics firm MediaHound. But now, with EQT’s money, it is “investing in its core business and expanding into adjacent capabilities,” the company says, specifically citing international options.

These past acquisitions can provide a kind of blueprint for what UTA could do next. Curtis Brown, based in the UK, is increasing the company’s international presence while remaining in its core distribution model. MediaLink, a consultancy known for its experience in the advertising industry, can help you expand further into the marketing or strategic consulting space. And MediaHound invested in data and analytics to power its UTA ​​IQ unit.

So while Endeavor is using WME to bolster other divisions, including investments in sports, and while CAA is doubling down on representation, UTA is expanding its representation business and finding other green shoots. As a private equity source says the hollywood reporterIn a world with an ever-increasing number of platforms, top-tier talent, whether actors, writers or directors, will continue to be in high demand.

And agencies are well positioned to get the best deals for this talent and protect themselves in the process. The question is how big can the Big Three be and what other areas can they establish themselves in.

This story appeared in the July 20 issue of The Gossipify. Click here to subscribe.