China's CMC Capital Partners has acquired a stake in U.S. talent and sports agency firm, Creative Artists Agency (CAA), with an eye to create a joint venture in China and expand CAA's businesses in the world's second largest economy, the Chinese private equity firm announced today.
No Financial details were disclosed. As part of the deal, CMC's chairman Li Ruigang, formerly chairman and president of the Shanghai Media Group, will become a board member at CAA.
The two parties will establish CAA China to further develop CAA's China-U.S. cross-border agency business, as well as to enter and expand into film, television, live performance and sports event marketing in China.
Los Angeles-based CAA set up a China office in 2005, and has since became the agent for numerous actors, actress and performing artists including the most well-known Chinese film director Zhang Yimou, actress Lin Zhiling and actor Zhen Zidan.
"Our deep partnership will benefit the development of both the U.S. and Chinese markets, with CAA helping CMC to enter the U.S. market while CMC assisting CAA to pursue a transition in China, especially helping CAA to upgrade its agency business in today's digital world," Li Ruigang said in the announcement.
The deal took place after six months of negotiations. CMC and CAA have worked together on multiple projects previously, building a solid foundation for future cooperation, Li said.
He added that the investment in CAA will broaden the pair's strategic cooperation beyond CAA's agency business to creative content creation, entertainment project financing, sports marketing and consulting.
Founded in 2010, CMC focuses on investing in the media, film, entertainment and sports sectors in China.
CMC and its affiliates have previously invested in dozens of companies including a sports start-up founded by Chinese football celebrity Sun Jihai, online video content producer Yitiao, U.S. film studio Imagine Entertainment, Chinese financial news website and mobile app WallStreetCn.com, entertainment group Yuehua Entertainment, mobile data service firm Juhe.cn and sports data firm Cubee Technology.