Casey Wasserman, the sports and entertainment entrepreneur who is the grandson of legendary talent agency mogul Lew Wasserman, is in talks to acquire the music assets of Paradigm agency, which has been hard hit by the coronavirus lockdown.
Sources said the talks have been on-again, off-again and there’s a good chance that a deal may never come to fruition. The discussions had not moved to the term-sheet phase as of Wednesday evening. Wasserman, chairman and CEO of Wasserman Media Group, is said to have been courted by by Tom Gores, the Platinum Equity CEO who is the brother of Paradigm founder and CEO Sam Gores.
Paradigm’s operations have been throttled by the sudden shutdown of the live music and event business. The agency has bulked up with a number of acquisition of music booking agencies and artist management boutiques in recent years, leaving it with substantial debt to service. The abrupt end of the touring business left the company in a financial pinch that forced the layoffs of more than 100 staffers and pay cuts for other employees in March.
An industry source pegged the value of Paradigm’s collected music operations at $150 million-$200 million. Last summer, Paradigm went far down the road with UTA in negotiations for an outright sale of the agency for what sources said was a little more than $300 million in cash.
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A representative for Paradigm could not immediately be reached for comment. A rep for Wasserman declined to comment. News of the talks was first reported by Hits Daily Double.
Wasserman Media Group runs a wide range of startup businesses focused on marketing and media rights. Wasserman was a big force behind Los Angeles’ bid to bring the summer Olympic games back to the City of Angels in 2028. He was previously the owner of the Los Angeles Avengers arena football team.
Paradigm, like other Hollywood talent agencies, has felt the immediate strain of the coronavirus lockdown putting a chill on so much of the entertainment business. Sam Gores decision to dramatically cut costs sparked a wrongful termination lawsuit from longtime Paradigm TV honcho Debbee Klein and much speculation that the agency will have to seek a partner such as Wasserman.
Wasserman’s interest in a traditional Hollywood agency focused on music is evocative of his lineage. Lew Wasserman, who rose to become an innovative studio mogul with his purchase of Universal Pictures, first made his name booking bands for legendary Music Corp. of America founder Jules Stein.
Paradigm occupied the distinctive former MCA office complex in Beverly Hills from 2003 to 2018.