The billionaire Pinault family is set to play a leading role in Hollywood after agreeing to buy a majority stake in Creative Artists Agency. Creative Artists Agency is a talent management firm that represents A-listers including Brad Pitt and Steven Spielberg.
Artémis, the holding company of French businessman Francois-Henri Pinault, which has assets worth more than $40 billion, is expected to acquire 53% equity Private equity firm TPG first acquired a stake in CAA in 2010.
The transaction would value CAA at $7 billion (including debt), this Financial Times report, citing people familiar with the matter. Financial details of the transaction were not disclosed.
“As a leader in its field, with an outstanding management team, a clear commitment to world-class service to world-class clients, and a tremendous track record of growth, CAA has all the relevant characteristics to be part of the Artemis family, in terms of geographic footprint and business activities to increase the diversity of our other assets,” said Artemis’ Pinault in a statement The deal was announced Thursday.
The deal comes at a tricky time for the film industry, which faces a strike by writers and actors that has halted production on many projects. Unions have raised concerns about pay, working conditions and new technologies such as artificial intelligence, and studios have yet to reach an agreement to address them.
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Negotiations between one of France’s richest men and CAA have been underway for months, with early reports published in July. Established in 1975, the agency has a strong reputation in the film industry.
The talent agency’s current leadership team will remain – Brian Lord, who represents George Clooney and others, will serve as chief executive of the group, with Kevin Howanet and Richard Lovett joining Lord Together continue to serve as co-chairs. The trio have reportedly made a “long-term commitment” at CAA a statement Posted by TPG Thursday.
The CAA deal comes a year after the agency acquired rival ICM Partners. $750 million, elevating its status as a Hollywood powerhouse. For its part, CAA has set its sights beyond the film business, working with sports personalities as well.
In recent years, other major talent companies have also raised funds to branch out into new territories. For example, Endeavor, one of CAA’s biggest competitors, owns Ultimate Fighting Championship and World Wrestling Entertainment.
Artemis is a big player in the luxury world, as Pinault is chairman of Kering, which owns Gucci and Saint Laurent. The French holding company has investments elsewhere, such as auction house Christie’s, but a deal with CAA would mark its foray into Hollywood.
Pinault is worth an estimated $38 billion, according to the Bloomberg Billionaires Index.
A stake in the brokerage will diversify Artemis’ portfolio outside of Europe and expand its footprint in lucrative industries. In some respects, the stake could intensify Kering’s rivalry with luxury goods giant LVMH, which made the appointment of singer Pharrell Williams ) forayed into the world of entertainment as creative director of menswear at Louis Vuitton.
Kering has been experimenting with forays into cinema – in April, Saint Laurent became the first luxury brand to own a cinema subsidiary, Saint Laurent Productions. Kering has also been a partner of the Cannes Film Festival since 2015, this New York Times The report said.
Although the investment is a first for Artemis, Pinault is no stranger to the world, as his wife is actress Salma Hayek Pinault, also a member of CAA. customers.
CAA and Artemis not returning immediately wealthrequest for comment.
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