Paul Turang
A studio executive once told me that CAA’s three top executives – Bryan Lourd, Kevin Huvane and Richard Lovett – had claws under their kid gloves. It was a backhanded compliment, as the CEO praised the trio’s dedication to their incredibly famous clients while lamenting their harsh negotiating style.
Those gloves are now being made by one of the world’s biggest luxury fashion houses, as the mega agency this week sold a majority stake in Francois-Henri Pinault’s family investment fund Artemis. In a deal that has not yet been completed, the French billionaire has secured majority ownership of the legendary talent shop and will integrate it into a portfolio that includes Gucci, Saint Laurent and the thousand-dollar-a-bottle winery Château Latour.
It’s impeccable brand placement for CAA, whose clients include Zendaya, Tom Cruise, Gwyneth Paltrow’s Goop and sports stars like Dwayne Wade. And in every Hollywood other than the one we live in – where production has been brought to a standstill by labor disputes between the major studios and the Writers Guild of America and SAG-AFTRA – the sale of a controlling stake in CAA to a Paris company has been carried out . A founding entrepreneur would be a world-shattering event.
Lourd, Huvane and Lovett have charted this course for the agency since taking the reins from CAA’s founding fathers in 1995. As its long-time rival WME, led by Ari Emanuel, grew big and went public, CAA tried to do business wildly. The situation has been unpredictable in recent years – especially after its acquisition of ICM Partners in 2022.
“This transaction is incredible given the numbers attached. “It proves that the guys who took over the company in 1995 knew what they were doing and it was a miracle that they held this operation together in its first year,” James Andrew Miller told Variety. He literally wrote the book about CAA, 2016’s “Powerhouse: The Untold Story of Hollywood’s Creative Artists Agency.”
Among rival agency leaders, some were impressed by the deal, saying the entry of a non-traditional buyer like a retail giant was good for the entire talent representation sector. “This is a great deal for the (CAA) people and good for business,” a senior WME official said.
Miller is referring to the $7 billion valuation that CAA achieved with the Artemis deal – even more impressive is the fact that it comes at a time when CAA’s small army of agents has none due to the ongoing WGA and SAG-AFTRA Arranging deals on behalf of actors or writers can strike. The CAA transaction has been on hold since May, when Lourd appeared in person at a star-studded dinner at the Cannes Film Festival hosted by Pinault’s fashion group Kering. He was looking for a buyer for the majority stake in CAA, which has been owned by private equity giant TPG since 2014. With the high-priced sale came new contracts for the ruling CAA triumvirate. Lourd was appointed to a newly created CEO position. This move was described as being in line with the management structure of other companies led by Artemis and Pinault. Lourd, Huvane and Lovett have spent a lot of time in recent days reassuring clients and others that they fully intend to remain hands-on, day-to-day agents.
Numerous senior insiders who spoke to Variety said the Lourd promotion was critical to Pinault’s operations because three managing partners at the top of the structure would not be working under its new European ownership. The three agents have always been kingmakers in this city, but Lourd has emerged as an industry statesman over the last decade. This is especially true in 2021, when he made a rare public attempt to criticize the then-uncontested Walt Disney Co. for its “shameless” public attack on his client Scarlett Johansson. She sued for fair compensation after her Marvel film “Black Widow” premiered simultaneously in theaters and on Disney+ during this pandemic year.
“Bryan is very comfortable on the world stage. People always told me he would say “Forget it,” hang out in New York, and go to the theater. But no, he still cares about customers and the company. He’s amassed a lot of influence and power, and that’s hard to give up,” Miller noted.
The question of customers is top of mind for many of CAA’s agent and management colleagues as CAA and WME continue to expand and diversify well beyond their core businesses under Endeavor ownership.
“Clients will wonder how their agents can have more time and focus for them as companies get bigger and agents are pulled in even more directions,” a top dealmaker said on condition of anonymity. The representative also noted that agents will enjoy the “added incentive” of Pinault’s eye-catching portfolio when looking for new clients, potentially leaving some old talent by the wayside. For some of CAA’s younger in-house stars, like Maha Dakhil (owner of one of the most notable and indispensable Instagram accounts in show business) and media finance expert Roeg Sutherland, there may also be less immediate paths to leadership, should they desire them.
What’s undeniable is that a company like CAA “has and needs a seat at the table that will create the architecture for the next era in Hollywood – and not just Hollywood, a global theater,” Miller said.
One of the most interesting findings from conversations with five different industry insiders – from public relations to private wealth management – is the increased attention on actress Salma Hayek, who is married to Pinault. The Oscar nominee and fashion icon is already a CAA customer and counts Lourd and Dakhil on her team. However, many speculated that this new business alliance would further increase the star’s standing in global media circles.
“Salma is running Hollywood now,” a source joked via text message with a smiley face emoji.
(Cynthia Littleton contributed to this report.)