TPG is returning to the Hollywood talent business with a new company after selling a majority stake in Creative Artists Agency to French billionaire François-Henri Pinault last year.
TPG said in a statement Friday that the private equity firm's new venture will “acquire, invest in and build diversified global businesses focused on talent management, representation and related sectors.”
Michelle Pratt, former president of Boat Rocker Media, and Eric Taiz, former executive vice president of corporate development and strategy at Boat Rocker, will serve as CEO and COO, respectively, of the new company.
The new company's first investment will be in Untitled Entertainment, a Hollywood talent management firm led by Jason Weinberg and Stephanie Simon. The investment will be funded by the firm's mid-market and growth equity platform, TPG Growth.
“As the entertainment industry continues to evolve across the board, a more complex landscape means more opportunities than ever before for ambitious talent and their agents,” Pratt said in a statement. “The future of representation increasingly requires relentless proactivity coupled with access to world-class tools that drive innovation and growth. This new firm will empower Untitled and a complementary group of future talent-centric companies to empower our diverse clients to leverage their extraordinary talents on their journey to achieving their highest career ambitions.”
The two will continue as co-CEOs and will each put significant capital into the new company, along with Boat Rocker, Untitled's current majority shareholder.
“The TPG and Boat Rocker teams share a belief that scaled services is the future of talent management, and together we are focused on building a management and representation business with expanded resources for managers and their clients,” Weinberg and Simon added. “With a broader ecosystem of relationships, a shared services division, better client management tools and new avenues for collaboration, this partnership marks the beginning of a new chapter for Untitled while maintaining the culture and mission that has guided us for so many years. We are excited to capitalize on Untitled's strong momentum and the many opportunities ahead.”
As part of the Untitled share sale, Boat Rocker will receive C$51.6 million in cash (approximately US$37.7 million), which will be used to invest in its IP, specifically scripted television, premium documentary programming and animation and its international expansion, as well as pursue strategic M&A opportunities. It will also receive 8.8% of the outstanding common shares of TPG's new talent management company.
Mr. Pratt will also receive a trading bonus from Boat Rocker in the form of cash and common stock of the Company. Proceeds to Boat Rocker will be net of Mr. Pratt's trading bonus.
Boat Rocker expects its full-year 2024 adjusted EBITDA to be approximately $10 million due to the sale of United, the impact on the media and entertainment industry of continued delays in new content commissioning, renewals, production and paid development, and regular timing fluctuations in deliveries, but does not expect the transaction to have a material impact on its other lines of business. The company has more than $75 million in cash and has no corporate debt.
Boat Rocker's credits include American Last: Broken Justice for Prime Video, Orphan Black: Echoes for AMC, AMC+ and BBC America, Palm Royale for Apple TV+ and Netflix's BET, based on the hit manga series Kakegurui.
Other documentaries include “Merchants of Joy” and the Sundance Film Festival premiere of “War Game,” the latter of which will be released in theaters via Submarine Deluxe starting August 2nd.
Additionally, Boat Rocker has partnered internationally for co-production and financing opportunities, including Ireland’s Deadpan Pictures, which is producing “Video Nasty” and “Mix Tape” in collaboration with Ireland’s Subotica and Australia’s Aquarius Films.
In addition to CAA, TPG's other entertainment industry related investments include DirecTV, Entertainment Partners, Fandom, Musixmatch and Spotify.
