Will the CAA-ICM Partners Merger Complete by Midyear?
Has the biggest merger in talent acquisition history ground to a halt? The imminent merger of ICM partners with CAA, a move that would cull the ‘Big Four’ to a mere ‘Big Three’, seems dead in the water, at least by what’s been released to the press. Blake & Wang P.A entertainment lawyer, Brandon Blake, updates us on what we know.
Closing End 2021- or Not
CAA, in particular, has a super-charge roster of major names, and has been fairly aggressive in acquiring ‘Gen Z’ talent over the last year, including influencers and podcast notables. ICM Partners brings a solid collection of book and sports representation, including the NFL and London’s Stellar Group, to the table. It’s easy to imagine the amount of leverage a combined team would bring. The deal was originally forecast to close at the end of 2021, but the last known update we had was mid-2022. As we enter Q2 for 2022, however, there’s still little but radio silence on the merger.
DOJ Hiccups
The delay seems to stem from the US Department of Justice (DOJ) competition law division investigation which was announced in January this year. It’s difficult to know what exactly triggered the DOJ’s interest, as the value of the deal has never been disclosed, but given that a successful merger would be the industry’s largest since Endeavour Talent and the William Morris Agency merged in 2009, it’s easy to guess that major numbers are on the table. At the time, the Screen Actors Guild announced that it would scrutinize the merger to ensure that performers would benefit, not lose, by the deal. Presumably the DOJ has similar intent in mind. No announcement on when the investigation will wrap up has been made to date.
Of course, no news can be good news too, and there is no indication yet of a significant challenge to the merger. With midyear and Q2 now unfolding in front of us, we assume some announcements will be made soon. We will be looking for them with much interest.
Comments
Post a Comment