Even before the talent agencies William Morris and Endeavor formally approved a merger Monday afternoon, several of the agents of those firms were already involved in high-stakes negotiations -- to get out.
Tom Strickler, one of Endeavor's four founders, sent out an e-mail at 6 a.m. announcing that he had submitted his resignation. Two top William Morris agents who previously worked at Endeavor are working on an exit strategy, other agency executives say.
William Morris' David Lonner, who represents such A-list talent as TV producer J.J. Abrams, and colleague Steve Rabineau were being courted by rival United Talent Agency, according to people familiar with the talks. Mark Itkin, who has built William Morris' reality TV business into a juggernaut, was also in play. He declined to comment.
Those agents, responsible for some of William Morris' top clients, were not offered board seats in the newly constituted agency.
The departures could be the tip of the iceberg, as the new goliath, called William Morris Endeavor Entertainment, combines operations and eliminates staff. The merged firm would employ more than 1,000 people, about one-third as agents. Some speculate that as many as 100 agents could lose their jobs, although representatives of William Morris and Endeavor say such talk is premature.
The 20-member William Morris board and the 28 Endeavor partners met at the same time Monday -- 2 p.m. -- to vote on the merger, which had been in discussions since the fall. The vote was largely a formality, as executives had already resolved questions of governance and valuation before the deal could be closed, according to a person close to the talks. A new entity will be created, with no cash changing hands, the person said.
William Morris Chairman Jim Wiatt will retain that title at WME Entertainment. Endeavor founder Ari Emanuel and managing partner Patrick Whitesell will share chief executive duties with William Morris President Dave Wirtschafter. They will be joined on the nine-member board by John Fogleman, Peter Grosslight and Jennifer Rudolph Walsh from William Morris and Rick Rosen and Adam Venit from Endeavor.
The merger, which had been the subject of on-and-off discussions for years, was motivated by the new economic realities in Hollywood. Fewer films and TV dramas and comedies are being made, while at the same time studios have been squeezing the salaries paid to talent. The agencies, which depend upon commissions from clients and TV shows for income, are battling one another over a shrinking pool of top actors, writers and directors who can still command large fees.
