LOS ANGELES & NEW YORK (CelebrityAccess) — Two major talent agencies, Artist Group International (AGI) and the Agency for the Performing Arts (APA), are reportedly in talks to merge, according to industry sources who spoke with CelebrityAccess.
Although there has been no official confirmation from either company, rumors of the merger have been circulating in the industry. The potential deal comes after both agencies received major investments from The Yucaipa Companies, a private investment firm owned by billionaire Ron Burkle.
Yucaipa acquired Artist Group International in January 2012 for an undisclosed amount and made a significant non-equity investment into APA in September of the same year to support the growth of the agency’s talent representation business.
Several insiders believe that the merger would be a logical move for both companies. APA’s roster has a strong focus on film and television, while Artist Group International represents a music-heavy talent base. A merger could create synergies between the two companies’ rosters and provide a broader range of services for clients.
However, a potential merger between the two companies would be complicated by AGI’s relationship with other agencies such as X-Ray.
APA is one of the oldest diversified talent agencies in the entertainment industry, with headquarters in Los Angeles and offices in New York, Nashville, Atlanta, Toronto, and London. The agency was founded in 1962 by former MCA executives David Baumgarten and Roger Vorce and is currently led by noted agent Jim Gosnell. APA represents high-profile clients such as Al Pacino, 50 Cent, Fetty Wap, and Idlewild.
Artist Group International was founded in 1986 by CEO Dennis Arfa and is headquartered in New York. The company has a music-focused roster that includes Elvis Costello, Linkin Park, Metallica, Noel Gallagher, and Iggy Pop, among others. The company has a solid reputation in the music industry for representing some of the biggest names in the business.
The potential merger between the two talent agencies could create a significant shift in the entertainment industry and lead to a stronger, more diversified company. Neither company has made an official statement regarding the potential merger, and it is unclear when a final decision will be reached.
Additionally, CelebrityAccess has also learned that both Dennis and Jarred Arfa recently renewed their contracts with Ron Burkle’s Yucaipa Companies for a five-year term.
UPDATE: A rep for APA denied that the merger was taking place at this time but noted that the two companies collaborate closely.
