Talent agencies now function as private-equity-backed venture capital firms

Evidence

Though they lost the battle with the WGA, the talent agencies could afford to be in open conflict with the WGA, in part because film and television talent is no longer their sole focus. … CAA Ventures, for instance, invests in early-stage startup companies, including Uber (transportation networking), Meerkat (mobile live streaming), Funny or Die (comedy-focused website and production company), and WhoSay (social media services and branding for celebrities). … Because they are housed within talent agencies owned by PE firms, these corporate venture capital firms offer their investment companies not only seed capital but also unique and valuable consultation on navigating Hollywood’s singular culture and connection to the agency’s talent roster. — Andrew deWaard, Derivative Media, 262

Categorization

• XREF: Connects to the larger private equity rollup thesis detailed across this book’s chapters on shadow studios and the money behind Hollywood.