Paradigm CEO Sam Gores told employees on Sunday that he has decided to “shut down discussions” with United Talent Agency (UTA) for a potential transaction between the two agencies.

“UTA made an offer to acquire Paradigm that would have represented one of the largest talent agency transactions in the history of our business,” he wrote in a statement obtained by  TheWrap “The offer was made for both the Talent/Literary and Music divisions. This offer is a tribute to the work that all of us have done and the quality of the asset we have created together. After careful consideration and in consultation with leaders of both the Music and Talent/Literary executive groups, I have made the decision to shut down discussions and not make this deal.”

UTA CEO Jeremy Zimmer said in a statement, “We admire Sam and the business that he and his colleagues have built. We are disappointed we didn’t come to an agreement. But we wish him and everyone at Paradigm the best.”

Also Read: UTA Promotes 5 Staffers to Agent Status

Talks that UTA was interested in acquiring Paradigm, whether in its entirety or solely its music department, heated up in past days, although speculation about a potential sale have been swirling since last year.

Paradigm’s music catalog is vast, having clients that include Coldplay, Ed Sheeran, Halsey, Imagine Dragons, Shawn Mendes, Charlie XCX, David Guetta, Van Morrison, The Verve, The Prodigy, and more. Apart from its music division, Paradigm reps clients like Yvonne Strahovski, Idina Menzel, Zoe Kravitz, Antoio Banderas, Domhnall Gleeson, Machine Gun Kelly and Ezra Miller.

Read Gores’ memo below.

Dear Colleagues:

I want to address the events of the past week and the press reports surrounding a potential transaction between Paradigm and UTA.

The fact is that our industry is in an era of significant change and also unprecedented opportunity.

The complexion of what the agency business will look like has led all of the major agencies including ourselves to look at ways to strengthen their platforms and provide more resources to clients.

UTA made an offer to acquire Paradigm that would have represented one of the largest talent agency transactions in the history of our business.

The offer was made for both the Talent/Literary and Music divisions. This offer is a tribute to the work that all of us have done and the quality of the asset we have created together.

After careful consideration and in consultation with leaders of both the Music and Talent/Literary executive groups, I have made the decision to shut down discussions and not make this deal.

There are reasons why a combination like this would have made sense for both agencies, but in the end, what is more compelling for us is how unique the culture at Paradigm is and how powerful our independent path can be.

For obvious reasons, it is not possible to communicate with the entire company when a conversation like this occurs. Those who know me and the history of how we have built Paradigm know that I always make decisions regarding the future of the business by considering what is ultimately in the best interest of our agency as a whole and all of our clients.

The past week has given us the opportunity to make us stronger both internally and externally. We should be proud of what we have built and be proud of our courage to bet on ourselves.

Let’s all get back to work and continue to do what we do so well.

For the Art For the Artist.

Sam