Merger of expertise companies CAA and ICM attracts DOJ scrutiny

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The Department of Justice is probing a serious Hollywood deal that’s poised to disrupt the expertise company ecosystem and leisure business, in line with a report.

The DOJ is scrutinizing CAA’s acquisition of ICM, two main Hollywood expertise companies that symbolize a few of Tinseltown’s largest stars, in line with The Hollywood Reporter.

CAA, the company that reps Brad Pitt, George Clooney and Scarlett Johansson, revealed in September that it could purchase ICM, residence of Shonda Rhimes, Alec Baldwin and Uma Thurman, noting that the deal would shut by the tip of 2021.

But a brand new inquiry by the DOJ over how the merger between two main companies would impression the Hollywood panorama, has delayed the deal, which is now anticipated to shut within the second quarter of this yr, nameless sources informed THR late Wednesday.

CAA, ICM and the DOJ didn’t instantly reply to requests for remark.

ICM's headquarters in LA.CAA’s deal to amass ICM, the fourth largest company behind WME, CAA and UTA, is dealing with DOJ scrutiny.GC Images

If a deal between CAA and ICM closes, the expertise company panorama would have three main gamers in Endeavor-owned WME, CAA and UTA, together with smaller rivals like APA, Gersh and Paradigm.

The DOJ’s antitrust division, led by Assistant Attorney General Jonathan Kanter, has already interviewed high executives at CAA and ICM in addition to some outsiders like APA CEO Jim Gosnell, a supply informed THR.

The probe could have been launched after Hollywood unions such because the Writers Guild of America and SAG-AFTRA voiced their issues, the supply stated.

CAA's Bryan LourdCAA’s Bryan Lourd stated he was “very confident” that the ICM acquisition would undergo, however now, it seems the deal’s time limit has been pushed again amid DOJ scrutiny.Getty Images

After the CAA-ICM deal was initially introduced, SAG-AFTRA nationwide govt director Duncan Crabtree-Ireland stated in an announcement that the union would “carefully scrutinize this combination of two storied talent agencies to ensure that performers will benefit from, and are not disadvantaged by, the deal.”

When THR reached out to CAA in September, co-chairman Bryan Lourd stated he was “very confident” the deal would undergo. But the DOJ antitrust division and the Federal Trade Commission has been essential of the excessive quantity of M&A exercise beneath President Biden.

CAA's LA headquartersCAA’s Century City headquarters in Los Angeles. The company represents A-listers like Brad Pitt, Meryl Streep and George Clooney.GC Images

The DOJ sued to dam ViacomCBS’ sale of ebook writer Simon & Schuster to Penguin Random House, citing issues that the deal would give “outsized influence over who and what is published, and how much authors are paid for their work.”

There can be a slew of different offers which will pique issues. They embrace Discovery’s deal to merge with WarnerMedia, Amazon’s acquisition of Hollywood studio MGM, and the merger of Spanish-language media giants Univision and Televisa.

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