#TheWeeklyRoundUp – 02.09.23

CAA Reportedly Nears $7 Billion Sale Agreement With French Billionaire François-Henri Pinault (Digital Music News)

A little over six weeks ago, Bloomberg reported that French billionaire François-Henri Pinault was in “advanced” talks to buy Creative Artists Agency (CAA). Now, the same outlet has provided additional details about the possible CAA sale, which is reportedly “close” to wrapping.
According to the newer of the reports pertaining to the potential buyout – which, Bloomberg went ahead and emphasized, could still “fall apart” – Pinault is specifically in talks to acquire the majority interest held by private equity firm TPG Inc. For reference, 61-year-old Pinault serves as president of his family’s Groupe Artémis, the entity behind Christie’s, Gucci owner Kering, and Puma, to name some.

Fort Worth-headquartered TPG, on the other hand, was founded in 1992, bought 35 percent of CAA in 2010, increased the stake to 53 percent (at a $1.1 billion valuation) in 2014, and went public (NASDAQ: TPG) in early 2022, according to reports.

Pinault would reportedly be purchasing TPG’s CAA holding as part of “a $7 billion deal”; the market cap of the private equity firm’s listed shares was hovering around $8.64 billion at the time of writing. Besides this reported deal – negotiations for which will conclude “in the next couple weeks,” per Bloomberg – the Singapore government’s Temasek Holdings investment company may be looking to increase its own CAA interest.

The latter would result from Temasek’s buying the stake held by Shanghai-based China Media Capital (CMC), which invested in CAA back in April of 2017 and, in connection with the agreement, set in motion the debut of CAA China.

Especially given the months of speculation regarding the sale of the Primary Wave backer CAA – and the conspicuous lack of public comment from the involved parties – it’ll be interesting to see whether an official deal is announced in the coming weeks or months.
More broadly, said deal would represent just the latest in a series of talent-space shakeups ushered in since 2020’s start. Thereafter, Providence Equity Partners-supported Wasserman Music formed by scooping up the troubled music division of Paradigm towards the beginning of 2021, before picking up the separate live music business of Paradigm UK in late April of 2022.

Additionally, UTA, after purchasing Echo Location and MediaLink in 2021, saw private equity firm EQT become its second-largest shareholder last year. More recently, WME in April of 2023 bulked up its Nashville agency representation with the buyout of Red 11 Music.

Lastly, CAA itself secured ownership of ICM Partners in a $750 million play in 2022 – the deal had first been announced in 2021 – before reportedly prepping layoffs across multiple divisions earlier this month.

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Lady Gaga launches Mental Health project with Cotton On Foundation (SA music news & entertainment)

Lady Gaga’s Born This Way Foundation and Cotton On Foundation Partner To Raise Funds for Global Mental Health Support, R 2 500 000 to be donated to Mental Health Support in South Africa.

Australian-born fashion and lifestyle brand Cotton On have partnered their philanthropic arm, Cotton On Foundation with US-based non-profit Born This Way Foundation, founded by Lady Gaga and her mother, Cynthia Bissett Germanotta, in 2012. Together, they aim to raise $5 million USD for global mental health, with R 2 500 000 being donated to provide mental health support for youth in South Africa.

“We’re honored to partner with Cotton On Foundation for our first global campaign amplifying our mission to build a kinder, braver world together,” said Lady Gaga, Co-Founder of Born This Way Foundation. “We are constantly working to uplift the stories of young people worldwide, and through this partnership, we invite everyone to practice kindness and learn how to better support one another. Our research tells us that kindness is one way we can support each other’s mental health.”

The two organisations came together to create a range of limited-edition products available from 1 September – 10 October 2023 with Cotton On donating 100% of the net proceeds to Born This Way Foundation, making Cotton On one of the biggest corporate contributors to global youth mental health resources and support in 2023.

Customers can purchase items, including caps, T-shirts, tote bags, stationery, and a denim jacket online and in select stores globally. The ‘Kinder, Braver, Together’ product design was inspired by Born This Way Foundation’s mission of supporting youth mental health and working with young people to build a kinder, braver world. An ethos shared by Cotton On Foundation on their journey to create a world where everyone can thrive.

“We are grateful for the support of Cotton On Foundation and the opportunity to expand our collective impact worldwide. Every day, we witness young people around the world leading and transforming the discussion around mental health and calling for increased resources to support themselves, their peers, and their communities,” said Cynthia Bissett Germanotta, President and Co-Founder of Born This Way Foundation. “We hope this partnership will accelerate the delivery of tangible resources, skills, and grassroots support necessary to build kinder, braver communities that value and improve mental health.”