Talent agencies pivoted into venture capital to blunt WGA leverage

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. The expansion into other talent sectors such as sports, fashion, and fine art is one example of this diversification, and another is the move into corporate venture capital. 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). Evolution Media, another investment subsidiary within CAA, also provides seed funding to startups with capital from TPG’s fund, as well as negotiating and structuring over $37 billion in sports media deals since 2015.30 Endeavor also has a pair of investment subsidiaries, the aforementioned Raine and WME Ventures, that offer access to an even broader network, including film, television, digital media, fashion, music, sports, brands, and events. 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 reader’s private equity rollup thread: CAA under TPG and Endeavor under Silver Lake are the shadow studios of the PE racket.