Los Angeles-based Creative Artists Agency (CAA), one of the biggest entertainment and sports agencies in the world, is reportedly in talks to sell a majority stake in its business.
That’s according to Bloomberg, which reports that the entity on the other side of the negotiation table is French billionaire François-Henri Pinault.
Citing people familiar with the matter, Bloomberg reports that CAA ‘could fetch a valuation of at least $7 billion‘.
One of the outlet’s sources added, however, that Pinault’s talks with TPG Capital-backed CAA ‘could still end without an agreement’.
Pinault’s family is behind the Kering group, whose portfolio of companies includes luxury brands and fashion houses from Gucci, to Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, as well as Kering Eyewear.
Kering parent company the Artemis Group was set up as the Pinault family’s investment vehicle in 1992 and counts assets such as Christie’s auction and publishing house Editions Tallandier.
It also owns a stake in sports brand Puma and has made investments in Deezer and ByteDance.
Founded in 1975, CAA was started by five agents who were working at the William Morris Agency, which became William Morris Endeavor (WME).
Those agents were: Michael S. Rosenfeld, Michael Ovitz, Ronald Meyer, William Haber, and Rowland Perkins.
Today, CAA represents a vast roster of prominent talent working in film, television, music, theatre, video games, sports, and digital content.
In music, the company represents some of the world’s biggest touring artists.
CAA is headquartered in Los Angeles and has a significant presence in New York, Nashville, London, Beijing, and Shanghai, as well as offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Geneva, Jacksonville, Las Vegas, Memphis, Miami, Munich, Orlando, Stockholm, and Toronto, among other locations globally.
In 2010, TPG Capital bought a 35% stake in CAA, and upped that stake to a reported 53% in 2014.
In September 2017, CAA announced that Temasek had acquired a minority stake in its business.
TPG Capital retained its majority position in CAA following the Temasek transaction.
At the time, then-CAA President Richard Lovett said: “As one the most successful and sophisticated investors in the world, Temasek provides an extraordinary level of insight and resources as we continue to provide the best opportunities for the company and our clients.
“Today’s announcement speaks to the incredible growth and relentless innovation across all areas of the agency. We have a combination of partners that provide global firepower for our continued success.”
In 2021, CAA made its own acquisition, snapping up rival entertainment and sports agency, ICM Partners (ICM). The deal was reported at the time to be valued at $750 million with “a pro-forma” enterprise value of $5 billion for the combined firm.
CAA promoted CFO James Burtson to President in 2021.Music Business Worldwide
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