Say this about the talent agency CAA; it has had some very aggressive and ruthless leaders at the helm since the company set up shop in 1975. From Michael Ovitz and Ron Meyer, two of the founders, to the current crew of killers led by Bryan Lourd, Richard Lovett, and Kevin Hurvane, this company is used to getting what it wants.
Most recently, it wanted to acquire ICM, a rival talent agency in Los Angeles, and of course, it completed the deal.
The deal was sealed this week when the government gave its approval allowing the sale to be finalized. It creates a monster of an agency; the biggest merger in Hollywood wince William Morris and Endeavor joined forces 13 years ago.
According to Deadline, the deal is valued at around $750 million, and the enterprise will now have a value of around $5 billion.
The news isn’t great for everyone at ICM. 105 positions are being eliminated, meaning 425 ICM agents and other support staff will be going across the street in Beverly Hills to join CAA.
Word is a lot of the top-earning ICM agents didn’t love the new pay package, with many settling for contracts paying them hundreds of thousands of dollars less than they were making in salary. But with CAA, they will have a good chance of making those lost dollars up in bonuses and equity.
When two big agencies combine, they often hold on to both company names and put a hyphen in the middle. That’s not happening here. ICM is permanently done.
Here’s part of a statement from the leaders of CAA.
“Today marks a new chapter in the history of our company, positioning us better than ever to deliver extraordinary opportunities for many of the world’s preeminent artists, athletes, thought leaders, brands, and organizations in entertainment, sports, and culture.”