Are agents investment bankers?
Agents could be investment bankers, but are they really? An agent directs talent to the appropriate writer, casting director, director, and producer. How much responsibility does the agent have for the overall financing of the piece de resistance, the film. Talent as in actors and actresses are found at film festivals, castings, theatre plays, theatre groups. model shoots, at a bar, at a school, everywhere. William Morris Endeavor ha struck a relationship with The Raine Group. The Raine Group was formed as a partnership with WME and serves the digital entertainment community as a merchant bank, allowing like a private equity fund or hedge fund, proprietary investing.
Do talent agencies have the same powers as merchant banks and investment bank focused on the entertainment space? Investment bankers tends to underwrite or act as the client’s “agent” to high net worth individuals, pension funds, hedge funds, and other banks. They are underwriting companies, not individuals. Talent agencies have now included branded entertainment as one of their many service offerings. This incorporates product placement and other areas of expertise. ICM, a top four agency, for instance describes on its website how it “leverages the agency’s extraordinary talent and intellectual property assets to create alliances with major corporations.”
The training of an analyst is similar in terms of long hours and fast paced life. The work is very different however, as it incorporates financial modeling skill sets and pitch book organization, merger plans and memo drafting. Whereas, the life of an agent assistant on his/her way to becoming an agent trainee is more about rolling calls, scheduling, script coverage, and client meetings.
In the late 90s DLJ had a dedicated media and entertainment group in Los Angeles to focus on exhibition companies and the ever growing digital media space. DLJ had a major underwriting practice and junk bond practice and was ultimately usurped by Credit Suisse.
The world is increasingly focused on the at home market. And was before with the DVD market. So how does this impersonalize the entertainment business overall? Where there seems to be consolidation of businesses that carry heavy “Rent Expense.” Take Barnes and Noble and defunct Border’s Bookstores. Now ask your favorite literary agent what they think of content and where are they going to access it. It is much easier than before, and you will find agents are working longer hours as their office is beginning to look like their home. Take Comcast or Adelphia Cable, acquisitions and consolidation. Just like William Morris and Endeavor.