Paradigm Selling Music Division To Wasserman

While the announcement from Paradigm did not disclose financial details, it did indicate that the founder of Platinum Equity, Tom Gores, brother of Paradigm CEO and chairman Sam Gores, would provide financial backing to the new music venture as an equity partner. Once the acquisition is complete the new company will have a new name and organizational structure. 

“This agreement is a win for all parties and a vital step on the restructuring path we embarked upon more than a year ago,” Sam Gores said in a statement. “It represents an important transition for the incredible music agents of Paradigm and the artists they so brilliantly serve. We are huge fans of Casey Wasserman and the company he’s built, and I am very pleased that he and his team will be at the helm of this important business line. It’s both thrilling and bittersweet to reach this agreement, transition to a new era for Paradigm, and initiate a stabilizing solution during a global pandemic that has created an existential crisis for our industry.”

Indeed, the global pandemic may have also hurt the price Paradigm was able to get for the sale.  The news follows a deal that broke down between UTA and Paradigm in June of 2019 which was reportedly in the range $250 million to $300 million. Previous reports claimed CAA was also interested in a possible acquisition. Since then, with WME-IMG’s parent company Endeavor failing to pull off its planned IPO in Sept. 2019 and a live industry forced to shutter in the wake of COVID-19, resulted in widespread furloughs, layoffs and departures from many agencies, it stands to reason the current deal would be valued at far less.

Buda Mendes/GettyImages –
Casey Wasserman

Wasserman, which rebranded from Wasserman Media Group in 2016, primarily represents professional athletes in the NFL, MLB and NHL as well as Olympic athletes. Last year, it acquired hockey-focused agency Acme World Sports and the Lithuanian basketball agency BBaltics. The company has expanded its holding to include creative and marketing agencies Laundry Service and Boris Agency as well as Unlock, a social audience data platform. In February, RedBird Capital purchased a significant minority stake in Wasserman reported to be between 30% and 40%, according to Sportico.

Casey Wasserman, CEO and chairman of Wasserman, is also the chair for LA28, which helped put together L.A.’s successful bid for the 2028 Olympics. He is also the grandson of Lew Wasserman, the famed talent agent and MCA studio executive.

Paradigm’s music department’s rapid expansion was, itself, built upon acquisitions. Those began with the foundational acquisition in 2005 of Monterey Peninsula Artists, which was established in 1975 by Dan Weiner and Fred Bohlander, who departed L.A.’s larger International Famous Agency (which eventually became ICM). Monterey Pen’s roster included The Doobie Brothers, Emmylou Harris, Aerosmith, Dave Matthews, Phish and Brandi Carlile.

In 2006, Paradigm acquired Little Big Man, owned and operated by Marty Diamond and Larry Webman, which gave Paradigm bi-coastal anchors and artists such as Coldplay, David Gray, Barenaked Ladies, Sarah McLachlan, The Fray, Franz Ferdinand, Dido, Snow Patrol, Avril Lavigne and Arctic Monkeys. 

Over the last decade, Paradigm’s roster grew considerably and qualitatively with acquisitions like Paul Morris’ electronic-heavy A.M. Only in 2012 (whose roster included, Skrillex, Tiesto and Zedd); 50% of London-based CODA in 2014 (Ellie Goulding [world ex North and South America], Bon Iver, [Europe, Asia + Africa] Imagine Dragons, and Bastille); The Windish Agency in 2015 (Lorde, Aphex Twin, Four Tet, Godspeed You! Black Emperor, Alt.J, Diplo and War On Drugs among many other primarily independent artists); 50% of X-ray Touring in 2017 (worldwide representation of Coldplay and Queens of the Stone Age [world ex North America] among others) and Dale Morris & Associates (Kenny Chesney, Old Dominion) in 2018. As Paradigm, the agency signed and developed major global acts including Billie Eilish, Ed Sheeran, Shawn Mendes, Kacey Musgraves and Janet Jackson, among others.

No mention was made of Paradigm’s international non-North American holdings which include Coda and X-ray Touring.

In the last year, Paradigm, like other agencies in the industry, endured financial hardships, which began prior to the global pandemic. In March 2020, Paradigm was one of the first agencies to undergo “temporary” layoffs which reportedly included some 250 employees. In May, Sam Gores announced he would forego his salary which he put toward a $1.1 million employee relief fund; around the same time reports surfaced that Wasserman was negotiating with Paradigm. By September of 2020, the temporary layoffs were termed permanent.

In the interim, several former Paradigm agents formed their own independent agencies including: TBA, with a roster that included The War On Drugs, Courtney Barnett and Chvrches, which launched in September;  MINT Talent Group, which followed later that same month and included agents from Paradigm, Madison House, CAA and WME; and Arrival Artists, which launched in October with five former Paradigm agents brought artists such as Khruangbin, Sufjan Stevens, BADBADNOTGOOD, Mt. Joy, Nubya Garcia and Car Seat Headrest.

Official Paradigm Statement:
We wanted to alert you to some important information regarding the Paradigm Music department. Paradigm Talent Agency and Wasserman announced today an agreement in principle under which Wasserman will acquire Paradigm’s North American live music representation business and form a new operating unit. Details of the new company including name and configuration will be shared by new owner Wasserman after the transaction closes, expected in Q2.

The agreement to divest the music assets is the latest in a series of restructuring steps that were initiated by Paradigm CEO Sam Gores prior to the coronavirus pandemic but accelerated when the pandemic began to disrupt the entertainment industry and force cancellation or postponement of both live and filmed productions. Paradigm continues to represent talent and literary clients, is in active discussion regarding strategic partners for its Talent and Literary business, and will be revealing that strategy at a later date. Paradigm plans to enter into a shared services agreement with Wasserman to ensure continuity of service to all Music clients for its talent and literary services.

As part of the Paradigm restructuring, Tom Gores stepped in to provide financial backing and to assist in strategic planning and partnership negotiation with other industry players. He will provide financial backing to the new music venture as an equity partner.