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Confirming that an offer to buy Paradigm had been turned down, Sam Gores spoke of the agency's "unique culture" and the power of retaining its independence
By IQ on 10 Jun 2019
Sam Gores, founder, chairman and CEO of Paradigm Talent Agency, has confirmed there will be no takeover of his business by United Talent Agency (UTA), telling Paradigm staff he turned down an offer that “would have represented one of the largest” acquisitions in the history of the agency sector.
On Friday, Billboard reported that Gores and UTA CEO Jeremy Zimmer had been in talks for several months about a merger that would have likely included UTA taking a majority stake in Paradigm.
Yesterday, Gores (pictured) moved to quash the speculation, revealing that there had been talks but that Paradigm had elected not to go ahead with the acquisition.
In an email to Paradigm staff, obtained by Hollywood news site Deadline, Gores told staff that the offer from UTA is “a tribute to the work that all of us have done, and the quality of the asset we have created together”.
“I want to address the events of the past week and the press reports surrounding a potential transaction between Paradigm and UTA,” wrote Gores.
“The fact is that our industry is in an era of significant change and also unprecedented opportunity.
“The complexion of what the agency business will look like has led all of the major agencies, including ourselves, to look at ways to strengthen their platforms and provide more resources to clients.
“After careful consideration … I have made the decision to shut down discussions and not make this deal”
“UTA made an offer to acquire Paradigm that would have represented one of the largest talent agency transactions in the history of our business.
“The offer was made for both the talent/literary and music divisions. This offer is a tribute to the work that all of us have done and the quality of the asset we have created together.”
Explaining the reason for his declining UTA’s offer, which would have brought independent-mided Paradigm under UTA’s corporate umbrella, as with the Agency Group in 2015, Gores continued: “After careful consideration and in consultation with leaders of both the music and talent/literary executive groups, I have made the decision to shut down discussions and not make this deal.
“There are reasons why a combination like this would have made sense for both agencies, but, in the end, what is more compelling for us is how unique the culture at Paradigm is and how powerful our independent path can be.”
“We admire Sam and the business he and his colleagues have built,” says Zimmer in a statement. “We are disappointed we didn’t come to an agreement, but we wish him and everyone at Paradigm the best.”
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