French billionaire Francois-Henri Pinault is in advanced talks to purchase a majority stake in Creative Artists Agency (CAA) in a deal that could value the US sports and entertainment giant at more than $7 billion, it has been reported.
Discussions between the parties have reached the final stages but a deal is not a certainty, according to Bloomberg.
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Pinault is the chief executive of luxury fashion group Kering and president of its parent company Groupe Artémis.
Founded in 1975, the Los Angeles-based agency represents many high-profile actors, directors, and music artists. In 2006, the firm launched its CAA Sports arm and branched into representing athletes.
CAA is backed by private equity group TPG Capital, which acquired a 35% stake in the company in 2010. In 2014, TPG increased its stake to 53% in a deal that valued the agency at $1.1 billion.
The sale talks coincide with a strike by Hollywood actors after talks with studios broke down, joining film and television writers who have been on strike since May.
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By GlobalDataPinault’s Kering Group is one of the largest luxury goods conglomerates in the world.
Luxury brands under its umbrella include Gucci, Saint Laurent, Balenciaga, Alexander McQueen, Brioni, and Bottega Veneta.
Alongside Kering, other assets of parent company Groupe Artémis include sportswear brand Puma, French Ligue 1 soccer team Rennes, French news magazine Le Point, and the Breizh Café chain.
In June 2022, CAA finalized and completed its $750 million deal to acquire International Creative Management (ICM) Partners, a leading agency with operations in the same sphere.
At the time, the combined value for the merged agencies was estimated at around $5 billion.
The acquisition deepened CAA’s resources in the soccer sector. ICM represents nearly 500 international players, coaches, and managers in the sport.
Image: Mario Tama/Getty Images
