CAA Passes on High-Priced IMG Deal

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Nov. 12 (Bloomberg) -- Forstmann Little & Co. cut the field of bidders for its IMG Worldwide talent agency to five, knocking out a joint bid from TPG Capital and Creative Artists Agency. Jon Erlichman reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Bidding board for a big agency representing stars like taylor swift and peyton manning.

Five groups are bidding to acquire img.

But was img's price tag too high for caa?

Jon erlichman is back now in l.a. this is a fascinating story i don't think the world knows is going on right now.

It is a great one that ties together the worlds of wall street and hollywood.

You have agencies interested in acquiring another agency, and they have backing from some big private equity firms, ca, for example, had teamed up with tpg and then you have a firm like wme teaming up with silver lake, which owns a stake in wme.

I think price is an important thing, cory.

My understanding is that not only was caa not all that comfortable at 2.5 billion dollars, it was not comfortable at $2 billion.

Price is important when you think about who benefits the most from a deal like this.

We know that caa already has a well-established a sports agency.

So the question always was, or is this a business they can attach to caa?

Sounds like what they would have had to do was bring these two together and that can be a messy process.

Rices what you pay, value is what you get.

I wonder how peter sherman sees the value in this deal.

Peter chernin has teamed up with a hybrid equity firm.

He is one of the more interesting players in hollywood.

He worked for years next to rupert murdoch.

These days he's on the board of twitter and pandora.

He is still producing films and tv shows.

He has been hungry to do one of these larger deals.

He was very active in trying to acquire who luke.

Its owners -- hulu.

Its owners decided they did not want to sell.

There are not always these kind of big sales taking place.

I think the question comes down to who wants the business the most and all of these players do have deep pockets.

Peter chernin, somebody who has teamed up with a private equity firm.

Interesting stuff.

A good one to watch.

Thanks a lot.

Less than one week after it went

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