Paradigm Chief Sam Gores: There Will Be No Sale To UTA

By Mike Fleming Jr, Nellie Andreeva

Sam Gores
Gores Paradigm

UPDATED with Jeremy Zimmer’s statement: As Deadline reported Friday, there will be no link-up between UTA and Paradigm. Paradigm chairman Sam Gores just put deal speculations to rest in an internal email. (you can read it in full below the post)

He revealed that there had been talks for UTA to acquire Paradigm.

“UTA made an offer to acquire Paradigm that would have represented one of the largest talent agency transactions in the history of our business,” Gores wrote. “The offer was made for both the Talent/Literary and Music divisions… After careful consideration and in consultation with leaders of both the Music and Talent/Literary executive groups, I have made the decision to shut down discussions and not make this deal.”

The potential clash of cultures is said to be among the reasons Paradigm decided to stay independent, even though sources said the leaders got along very well in their discussions. Gores touched upon that in his memo.

“There are reasons why a combination like this would have made sense for both agencies, but in the end, what is more compelling for us is how unique the culture at Paradigm is and how powerful our independent path can be,” he said.

UTA

In a statement, UTA CEO Jeremy Zimmer shared disappointment that a deal with Paradigm did not come together.

“We admire Sam and the business he and his colleagues have built,” Zimmer said Sunday. “We are disappointed we didn’t come to an agreement. But we wish him and everyone at Paradigm the best.”

The resolution comes after a week of rampant speculation that negotiations were underway for UTA to acquire fellow Hollywood agency Paradigm.

Here is Gores’ full email:

Dear Colleagues:

I want to address the events of the past week and the press reports surrounding a potential transaction between Paradigm and UTA.

The fact is that our industry is in an era of significant change and also unprecedented opportunity.

The complexion of what the agency business will look like has led all of the major agencies including ourselves to look at ways to strengthen their platforms and provide more resources to clients.

UTA made an offer to acquire Paradigm that would have represented one of the largest talent agency transactions in the history of our business.

The offer was made for both the Talent/Literary and Music divisions. This offer is a tribute to the work that all of us have done and the quality of the asset we have created together.

After careful consideration and in consultation with leaders of both the Music and Talent/Literary executive groups, I have made the decision to shut down discussions and not make this deal.

There are reasons why a combination like this would have made sense for both agencies, but in the end, what is more compelling for us is how unique the culture at Paradigm is and how powerful our independent path can be.

For obvious reasons, it is not possible to communicate with the entire company when a conversation like this occurs. Those who know me and the history of how we have built Paradigm know that I always make decisions regarding the future of the business by considering what is ultimately in the best interest of our agency as a whole and all of our clients.

The past week has given us the opportunity to make us stronger both internally and externally. We should be proud of what we have built and be proud of our courage to bet on ourselves.

Let’s all get back to work and continue to do what we do so well.

For the Art For the Artist.

Sam

This article was printed from https://deadline.com/2019/06/paradigm-chief-sam-gores-no-deal-with-uta-coming-1202629881/