Pinault bought a majority stake in Hollywood agency that represents his wife

UPDATE 08/09/2023 - After months of gossip and negotiations, François-Henri Pinault, the supreme head of Kering, has acquired a majority stake in Creative Artists Agency (CAA), the renowned talent agency that represents top celebrities such as Zendaya, Brad Pitt, Ryan Murphy and Tom Hanks. The transaction, the financial details of which were not disclosed, involves the purchase of the shares previously held by private equity firm TPG through Artémis, the Pinault family's investment company. In a joint statement, the CAA leadership expressed enthusiasm for the partnership with Artémis, highlighting the company's global reach, resources and shared commitment to creativity and innovation. They also extended their gratitude to TPG for their strategic expertise and support during the 13-year partnership. François-Henri Pinault, as CEO of Artémis, sees CAA as a valuable addition to the diversified portfolio he now holds, which includes luxury brands such as Gucci, Saint Laurent and Balenciaga, Christie's auction house, the Pinault Collection of contemporary art and wine estates such as Château Latour. Although there may be speculation about potential synergies between CAA and the Kering brands, however, sources suggest that Artémis sees this investment as a strategic move rather than a fashion-focused initiative although it is obvious that the association with Kering will have an impact on the celebrity front.

Despite the change in ownership, CAA's leadership will remain stable. Bryan Lourd, Kevin Huvane and Richard Lovett, the current leaders of the talent agency, will continue to serve as co-chairmen, with Lourd set to become the managing director after the completion of the transaction. Jim Burtson, who led the team responsible for the CAA transaction, will remain chairman of the agency. Investment firm Temasek will remain a minority investor in CAA, while CMC Capital remains a strategic partner. The transaction is expected to close later this year, subject to the fulfilment of customary closing conditions. CAA is a versatile agency operating in various entertainment sectors, including film, television, theatre, music, video games, publishing, podcasts, sponsorships, speakers, fashion and the influencer economy. In addition, CAA owns CAA Brand Management, a renowned brand development and management company, as well as CAA Sports, which represents numerous athletes, coaches and commentators in various sports. The agency was valued at $5.5bn when it acquired International Creative Management (ICM) in 2022, further expanding its presence in the entertainment industry.

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According to rumors reported by BoF, luxury magnate François-Henri Pinault is set to become even more influential through the acquisition of a majority stake in Creative Artists Agency (CAA), one of the most prominent talent agencies in the industry, in a deal valued at $7 billion. The news emerged during the strike of Hollywood writers and actors, and the negotiations may still end without an agreement. However, if the acquisition goes through, Pinault would further expand his influence beyond the fashion industry. The Pinault family, already a majority shareholder in Kering SA, which owns renowned brands like Gucci and Bottega Veneta, controls prestigious assets such as Christie's auction house and vineyards like Chateau Latour in Bordeaux through their company Artemis.

Founded in 1975 by Michael Ovitz, Ron Meyer, and several partners, CAA has long been one of Hollywood's leading power brokers. Headquartered in Los Angeles, the agency provides talent management services to Hollywood studios. The potential sale of CAA comes at a critical time for the entertainment industry, as it grapples with the rapid evolution of streaming trends and the quest for profitability. Additionally, the industry faces a potentially crippling strike, as announced by the union's Twitter account following the failure to reach a new agreement with the Alliance of Motion Picture & Television Producers, representing studios such as Walt Disney Co. and Netflix Inc.

Representatives for CAA and TPG declined to comment on the acquisition talks, while a representative for Pinault did not immediately respond to requests for comment. The outcome of the negotiations remains uncertain, but if successful, the deal would mark another milestone in the expansion of French billionaires' presence in the global business landscape. The potential acquisition by Pinault highlights how French billionaires are expanding their influence into new territories. In 2019, Patrick Drahi, founder of French telecommunications company Altice, acquired Sotheby's auction house, while Bernard Arnault, the second-wealthiest person in the world, not only leads the LVMH group but also has extensive involvement in art and entertainment.