Paradigm Founder-CEO Sam Gores has denied that the agency is for sale, in the wake of a published report that the agency was in talks to be sold to CAA.
“The Los Angeles Times” reported Thursday afternoon that Paradigm had held “exploratory discussions” with CAA. Gores responded by sending a company wide email that said, “Let me state emphatically – we are not for sale, nor are we selling the agency.”
CAA had no comment. Gores had gone public seven months ago about merger activity, announcing in June that he was calling off talks about a potential merger between Paradigm and UTA.
Paradigm made a significant cut to its staff earlier this month, laying off about 30 agents and support staff, or 4% of its employees, and reshuffled is executive suite to streamline Paradigm administrative operations, with younger Paradigm agents also being given the chance to step up into larger admin roles in addition to their other duties.
Sources also said that the layoffs are not due to Paradigm’s ongoing standoff with the Writers Guild of America. The agency has held out against signing a deal with the Writers Guild of America, which told its members on April 13 to fire their agents if the agents had not agreed to the WGA’s ban on packaging fees and affiliate production ownership. CAA, UTA and WME have sued the WGA on antitrust grounds.
Full email from Gores below:
Dear Colleagues:
I want to address a recent press report suggesting the potential sale of Paradigm. Let me state emphatically – we are not for sale, nor are we selling the agency.
As many of you are aware, the influx of private equity into talent agencies and the WGA standoff, among other factors, are pushing agencies to pursue strong, diversified companies such as Paradigm.
As I have said before, we like the independent and successful path we’re on. Our focus continues to be growing Paradigm and providing the best possible opportunities for our colleagues, our artists and the art that they create.
Let’s ignore the chatter and idle speculation and stay focused on the important work at hand. I look forward to seeing you at Town Hall on Monday.
Sam