Paradigm CEO Sam Gores Says He ‘Shut Down Discussions’ With UTA
“I have made the decision to shut down discussions and not make this deal,” Sam Gores says in a memo to staff
Beatrice Verhoeven | June 9, 2019 @ 4:32 PM
Last Updated: June 9, 2019 @ 8:52 PM
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.”
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
9 Biggest Billion-Dollar Entertainment and Media Deals in 2017 (Photos)
While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.
Here are some of the biggest deals of the year:
Getty Images
Disney to acquire most of 21st Century Fox for $52.4 billion
In a massive deal that could change the entertainment industry even more than AT&T-Time Warner, Disney announced plans to acquire Fox's film and TV studios and much of its non-broadcast television business, including regional sports networks and cable networks such as FX, FXX and Nat Geo. Disney would also pick up Fox’s stake in the European pay-TV giant Sky — and be better positioned to win regulatory approval to complete the acquisition of the 61 percent of the company it does not already own.
Discovery Communications agrees to buy Scripps Networks Interactive for $11.9 billion
The merger of two cable powerhouses brings together channels including Discovery, Science, Food Network and HGTV – and could give the combined company a stronger position as pay-TV continues to migrate to the internet.
Discovery/Scripps
Sinclair Broadcast Group agrees to buy Tribune Media for $3.8 billion
This deal, if approved, would give conservative-leaning Sinclair control of 223 stations in 108 markets, including 39 of the top 50, covering 72 percent of households in the country. And it's only possible under rule changes implemented by new FCC Chairman Ajit Pai.
Sinclair/Tribune
Cineworld offers to buy Regal Cinemas for more than $3 billion
After a string of movie theater mergers last year, the sector has quieted down -- along with the box office. And while this isn’t yet a done deal -- or even an accepted offer -- British chain Cineworld made a late November bid of $23 a share for the U.S.’s No. 2 cinema chain.
Cineworld/Regal
Meredith Corp. acquires Time Inc. for $2.8 billion
The magazine megadeal is a sign of changing times in the publishing industry, with the owner of esteemed brands like Time, Fortune and Sports Illustrated selling to the parent of Better Homes and Gardens and Country Life – backed by $650 million from big-time conservative donors the Koch brothers.
Meredith/Time
Verizon acquires Straight Path Communications for $2.3 billion
Straight Path may not be a household name, but it was the subject of a bidding war between AT&T and Verizon. The company is one of the largest owners of millimeter wave spectrum, seen as key to the buildout of 5G networks, which should power much faster mobile internet -- better for video -- in the near future.
Verizon/Straight Path
Disney buys the rest of BAMTech for $1.6 billion
The Mouse House jumped into internet TV in a major way in 2017, announcing upcoming Disney and ESPN-branded streaming services and acquiring the rest of streaming tech company BAMTech to power those products.
Disney/BAMTech
Entercom buys CBS Radio for $1.5 billion
CBS Radio was intended to be spun off from its broadcast parent in an IPO, but instead it was scooped up by a competitor. The combined company, now the second largest radio business in the country, owns and operates 244 stations in 47 markets.
Entercom/CBS Radio
MGM buys the rest of Epix for $1 billion
The independent studio went all in on the pay-TV business, buying the rest of the premium cable network from Viacom and Lionsgate. And that's paid immediate dividends, as MGM's media networks division propelled it to a strong third quarter.
MGM/Epix
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Rewind 2017: Media and content consolidation continued this year
While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.