CMC forms partnership with Hollywood talent agency CAA
China media-focused private equity firm CMC Capital Partners has acquired a minority stake in Hollywood talent agency Creative Artists Agency (CAA) for an undisclosed sum.
As part of the deal, CMC has also formed a media and entertainment joint venture (JV) CAA China. Ruigang Li, CMC’s chairman, will join CAA’s board of directors.
The China JV will be majority owned by parent company CAA, which is also backed by TPG Capital. It is intended to create a wide spectrum of new business and client opportunities in the growing Chinese market. These range from talent representation, endorsements, and sports, to digital media, music, and original content production, two firms said in a joint statement.
CAA represents a wide range of professionals working in film, TV, music, theatre and digital content industries, including George Clooney. It also represents more than 1,000 international athletes in sports such as football, baseball, basketball and hockey - footballer Cristiano Ronaldo is among its clients - and works in the areas of broadcast rights, corporate marketing initiatives, licensing, and sports properties for sales and sponsorships.
The firm opened its China office in Beijing in 2005 and represents a range of Chinese stars including film director Yimou Zhang and Taiwanese supermodel Chi-ling Lin. Over the years, it has been involved in more than 75 Chinese-language films and has helped direct more than $400 million in Chinese capital into English-language content.
CAA China will assume control of these existing operations and add senior management talent to the more than two dozen CAA employees currently based in Beijing.
“We believe China and the US are the two biggest entertainment markets and play pivotal roles on the global landscape. The partnership not only creates commercial and industry value, but also serves as an innovative force in the evolution of the Chinese media industry,” said CMC’s Li.
The CAA-CMC deal reflects continued interest among US media and entertainment giants in establishing its foothold in the fast-growing Chinese market. In June last year, a consortium led by Sequoia Capital China created a JV with WME-IMG to develop sports and entertainment business. Tencent Holdings, private equity firm FountainVest Partners and its portfolio company Focus Media also participated in the investment.
Founded in 2010, CMC previously formed China JVs with US-based Dreamworks Animation and Warner Brothers Entertainment, as well as London-headquartered TV producer FremantleMedia to develop their China businesses.
In 2014, CMC and FountainVest paid $80 million for a 20% stake in IMAX Corporation's China subsidiary, while CMC also launched a fund with IMAX to produce Chinese-language movies. IMAX China listed in Hong Kong in 2015 and teh two GPS completed their exit two weeks ago.
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