To understand the topsy-turvy world of Hollywood talent agencies these days, a tennis court in Iowa Falls, Iowa -- population 5,435 -- is a good place to start.
It was there in the early 1980s that teenagers Patrick Whitesell and Suhail Rizvi formed a lasting friendship while practicing their serves. Two decades later, they're still playing on the same court. Whitesell is a partner at Endeavor Agency; Rizvi is the new co-owner of International Creative Management.
It's often said that relationships are the currency of Hollywood. But especially in the tumultuous agenting business, the Whitesell-Rizvi alliance is the kind of connection that is fueling consolidation rumors about the top deal-making firms.
For more than a decade, the five largest talent agencies -- Endeavor, ICM, William Morris Agency, Creative Artists Agency and United Talent Agency -- have operated without a significant buyout or start-up in their circle. But in recent months, as a wave of acquisitions has shrunk the number of buyers that agents sell to, many believe it's a matter of time before the agency business contracts.
Since December, Paramount Pictures has bought DreamWorks SKG, Walt Disney Co. has agreed to acquire Pixar Animation Studios and the WB and UPN networks announced plans to merge to form the CW. You don't have to be an accountant to see why many "tenpercenters," as the trade paper Variety calls agents, are wondering whether their employers will soon follow suit.
In one oft-repeated scenario, the buttoned-down ICM could buy Endeavor, which has cultivated a renegade image that attracts younger and more cutting-edge talent. Or ICM could buy UTA, which is strong in television. Or William Morris, eager to smack down the A-list powerhouse CAA, could buy Endeavor or UTA. Or Endeavor and UTA could merge.
Spokesmen for Endeavor, ICM, William Morris and UTA declined to comment on potential mergers. Still, in private, many in Hollywood say that talks are underway and that big changes may be on the horizon for the firms that procure work for Hollywood's best-known actors, directors, writers and show runners.
"As studios merge, there are less and less buyers to sell your product to," said an executive who spent a decade in the agenting business. "They need to get together so they have more leverage."
