Two of Hollywood’s biggest talent agencies have announced plans to merge in a power play that attempts to shift leverage from movie studios and record labels back to artists, actors, writers and directors.
The 111-year-old William Morris Agency said Monday it will join with upstart Endeavor, a 14-year-old agency cofounded by Ari Emanuel, brother to White House chief of staff Rahm Emanuel and the inspiration behind the character Ari Gold on HBO’s “Entourage.”
The combined entity will be called William Morris Endeavor Entertainment and have revenue in the range of $250 million to $300 million a year. Layoffs are expected, perhaps affecting more than 100 people.
The move is also intended to help the companies survive a downturn that has caused movie studios to slash production, while record labels have been paring down rosters to cope with the decline in music sales.
William Morris has about 800 employees and a foothold in all entertainment fields from movies and books to TV, but an especially strong representation in music, with clients including Kanye West, Lady Gaga and Brooks & Dunn.
Meanwhile, Endeavor, with under 250 workers, has secured an up-and-coming roster of stars such as Javier Bardem and Sacha Baron Cohen along with producers Larry David of “Curb Your Enthusiasm” and Josh Schwartz of “Chuck.”
William Morris Chairman Jim Wiatt will retain his title at the combined company. Dave Wirtschafter will shift from president to co-CEO with Endeavor’s Emanuel and Patrick Whitesell.
William Morris will have five members to Endeavor’s four on a nine-member board.
The merger requires the approval of antitrust authorities but is expected to close in the second quarter.
In a sign of changing times, movie studios have recently been demanding that actors reduce their upfront salary guarantees by as much as half and instead participate in back-end profits if th e movie is a hit.
The days of huge advances for musicians have also largely ended as sales of compact discs have plummeted and digitally downloaded tunes have failed to make up the difference.
The merger means the new entity will be on a closer footing with Creative Artists Agency, which is often cited as the largest, though the agencies keep their books closed.
The third-largest Hollywood talent agency remaining will be International Creative Management.
Ron Cicero and Bo Clancey Launch Production House 34North
Executive producers Ron Cicero and Bo Clancey have teamed to launch 34North. The shop opens with a roster which includes accomplished directors Jan Wentz, Ben Nakamura Whitehouse, David Edwards and Mario Feil, as well as such up-and-coming filmmakers as Glenn Stewart and Chris Fowles. Nakamura Whitehouse, Edwards, Feil and Fowles come over from CoMPANY Films, the production company for which Cicero served as an EP for the past nearly five years. Director Wentz had most recently been with production house Skunk while Stewart now gains his first U.S. representation. EP Clancey was freelance producing prior to the formation of 34North. He and Cicero have known each other for some 25 years, recently reconnecting on a job directed by Fowles. Cicero said that he and Clancey “want to keep a highly focused roster where talent management can be one on one--where we all share in the directors’ success together.” Clancey also brings an agency pedigree to the new venture. “I started at Campbell Ewald in accounts, no less,” said Clancey. “I saw firsthand how much work agencies put in before we even see a script. You have to respect that investment. These agency experiences really shaped my approach to production--it’s about empathy, listening between the lines, and ultimately making the process seamless.” 34North represents a meeting point--both literally and creatively. Named after the latitude of Malibu, Calif., where the idea for the company was born, it also embraces the power of storytelling. “34North118West was the first GPS-enabled narrative,” Cicero explained. “That blend of art and technology, to captivate an audience, mirrors what we do here--create compelling work, with talented people, harnessing state-of-the-art... Read More