The Pinault family tempted by the magic of Hollywood

Luxury tycoon François-Henri Pinault invites himself to Hollywood. The CEO of the Kering group is close to an agreement to acquire a majority stake in Creative Artists Agency (CAA), according to Bloomberg, which cites sources familiar with the matter. In mid-July, the specialized site Fashion Network was already reporting the information. Contacted by AgefiArtemis, the holding company of the Pinault family, has not confirmed.

The talent agency CAA, backed by the private equity firm TPG, could reach a valuation of at least 7 billion dollars (6.24 billion euros), according to the two media.

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From luxury to cinema

If these negotiations succeed, the French billionaire, husband of actress Salma Hayek, would set foot in the world of cinema, beyond the empire he has built up in luxury through the Kering group ( Gucci, Saint Laurent, Bottega Veneta, Creed). With CAA, the Pinault family could invest in the “value” of celebrities, and use some of the famous faces to bolster its other businesses – like in luxury.

CAA, founded in 1975 by Michael Ovitz, Ron Meyer and several other partners, has long been one of the leading agencies representing artists in Hollywood. Based in Los Angeles, she represents actors such as Brad Pitt, George Clooney and Natalie Portman.

In Los Angeles, CAA and its competitors WME and United Talent Agency have in common the fact that they are backed by funds managed by a private equity firm.

In 2010, TPG acquired a 35% stake in CAA, before rising to 53% in 2014, in a deal that valued the agency at $1.1 billion ($978 million). euro). CAA’s valuation soared to $5.5 billion after acquiring one of its main competitors, the agency ICM.

WME, for its part, has the American private equity firm Silver Lake as its main shareholder.

United Talent Agency, the third largest agency, sold a stake to Swedish private equity firm EQT AB last year.

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