Hollywood’s talent agencies have long had a reputation, in the public’s imagination at least, as a world of fast cars, rooftop bars and foul-mouthed, phone-throwing power brokers who will stop at nothing — and spare no expense — to advance their clients’ interests. Or their own, for that matter.
The high-flying, go-go culture of the agencies has given way to a more restrained, fiscally disciplined one in recent years, however. That evolution has only accelerated as private equity firms have swooped into the business.
These Wall Street investors — who have poured more than $1 billion into the two largest talent agencies, William Morris Endeavor and Creative Artists Agency, over the last five years — are helping to bankroll those agencies’ expansion into new arenas outside Hollywood including sports, technology, fashion and food.
Alibaba could give Hollywood studios new pipeline into China
Alibaba could give Hollywood studios new pipeline into China
But they’ve also put a fresh focus on driving profits, insiders say — essentially flipping the script on the famous talent-rep mantra from the film “Jerry Maguire” and saying, “Show us the money.”
It wasn’t long ago that talent agencies were facing an uncertain future, as film studios scaled back their slates, the TV industry fragmented and audiences scattered.
But where many saw an industry in crisis, some investors saw opportunity, particularly as digital players including Netflix, Amazon and Google opened new channels for the distribution of entertainment. In a digitally wired world, they theorized, the role of deal makers in the ecosystem would become only more important.
Wall Street investors have put a fresh focus on driving profits, insiders say — essentially flipping the script on the famous talent-rep mantra from the film “Jerry Maguire” and saying, “Show us the money.” (Columbia/TriStarPictures)
