Century City-based Creative Artists Agency said Monday that it is acquiring ICM Partners for an undisclosed price, in a deal could transform Hollywood's talent agency industry.
The transaction, which is subject to regulatory approval, would reduce the number of top agencies to three dominant players: CAA, WME and United Talent Agency. ICM is considered the fourth largest talent firm.
The sale — the biggest talent agency deal since WME scooped up IMG in 2014 — would give CAA and ICM the size and scale to better compete against Beverly Hills entertainment juggernaut Endeavor, which owns talent agency WME and has been on an aggressive growth spurt. The company recently launched a successful IPO.
The deal also gives CAA access to a lucrative publishing business and ICM's top clients, including "Grey's Anatomy" showrunner Shonda Rhimes, actor Samuel L. Jackson, director Spike Lee and Ellen DeGeneres.
CAA already represents prominent talent including showrunner Ryan Murphy, actor Reese Witherspoon and music artists such as Ariana Grande.
"The strategic combination of CAA and ICM bolsters our collective resources, expertise and relationships to deliver even more opportunities for our world-class clients to build their careers and their brands across multiple disciplines and platforms in an evolving marketplace," CAA leaders Bryan Lourd, Kevin Huvane and Richard Lovett said in a statement. "Our strong financial position enables us to continue to expand and diversify our businesses, with service and representation remaining central to what we do and who we are."
The acquisition comes as talent agencies have been under growing strain during the pandemic, as COVID-19 concerns have canceled or delayed live events, concerts and Hollywood productions. Last year, many companies including CAA and ICM, took cost-reducing measures including salary cuts and layoffs. In the summer of 2020, CAA laid off 90 agents and executives and furloughed 275 staffers, while ICM Partners laid off 40 of its support staffers.
CAA also filed a lawsuit recently against its insurance company to cover some of its losses due to COVID-19.
Hollywood talent agencies are also recovering from a bruising battle with the Writers Guild of America over such practices as investing in productions and charging fees for packing shows. For more than a year, agencies including ICM Partners and CAA were unable to work with WGA writers until an agreement was reached.
Under a deal that both companies reached with the WGA last year, agencies are limited in their ability to diversify because of a restriction on ownership in production companies. Additionally, by the end of June 2022 they will no longer be able to charge new packaging fees.
To comply with the agreement, CAA recently reduced its stake in Hollywood production company wiip to about 20%.
ICM Partners CEO Chris Silbermann will join CAA's shareholder board.
"Together, we will build upon our accomplishments and entrepreneurial spirit, and continue to demonstrate an unwavering commitment to the best interests of our clients, as well as empowering new, diverse voices within the industry," Silbermann said in a statement.
Founded in 1975, International Creative Management has become one of the industry's leading talent agencies. Silbermann joined ICM in 2006 when it acquired Broder Webb Chervin Silbermann Agency, where he was the youngest partner and earned a reputation as a sharp and ambitious agent.
In 2012, the Century City firm rebranded itself as ICM Partners after Silbermann led the charge to make it a partnership, with agents buying out private equity investor Rizvi Traverse Management.
In 2019 the company took on funding from Crestview Partners and began an expansion drive. Last year ICM bought London-based Stellar Group — making it a major player in sports representation — acquired live-music booking agency Primary Talent International and took a minority stake in Swedish firm Albatros Agency.
ICM Partners had recently come under scrutiny, after many former employees described mistreatment by their managers to the L.A. Times. The paper's investigation highlighted numerous allegations of harassment and other misconduct against women by several male agents and executives.
ICM has said it "does not tolerate harassment, bullying or other inappropriate conduct. HR investigates all reports received and addresses each with appropriate disciplinary measures up to and including dismissal."
