CAA Spins Off Marketing Business to Stagwell Media
The award-winning division will become a new company majority-owned by the private equity fund.
CAA is spinning off its award-winning entertainment marketing division into a separate company owned by private equity fund Stagwell Media, The Hollywood Reporter has learned.
CAA Marketing co-head and chief creative officer Jae Goodman will become CEO of the yet-to-be-named organization, which will be majority-owned by Stagwell with a minority stake held by CAA. CAA Marketing co-head David Messinger will remain at CAA in an advisory capacity while the division’s other approximately 50 employees will move to the new company, which will relocate out of CAA's Century City headquarters into new office space in Los Angeles in the new year.
“We have always been committed to developing content and experiences that attract an audience rather than distract it, while simultaneously driving brand and business results,” Goodman said in a statement. “An increasing number of brands are focusing on this content-centric, integrated approach, asking us to create ever more aspects of campaigns. Within Stagwell’s constellation of specialized marketing services, we believe we can deliver even better strategic and creative work for our clients.”
CAA Marketing’s work includes Chipotle’s “Back to the Start” and “The Scarecrow” animated shorts, which won the prestigious Grand CLIO awards in their respective years. Other accolades, for clients including Coca-Cola, General Motors and Anheuser-Busch InBev, include four Cannes Lions Grand Prix wins, 11 Emmy nominations with four wins and 10 Webby Awards.
Washington, D.C.-based investment advisory company The Stagwell Group was formed in June 2015 and its private equity fund, Stagwell Media, has raised $250 million in capital with the ability to leverage that to spend up to $750 million in acquisitions. The new company will join The Stagwell Group’s portfolio of brand services agencies, including SKDKnickerbocker, National Research Group and Harris Insights & Analytics.
“Stagwell is pleased to welcome a new world-class creative group that has worked at the highest level to the Stagwell team, and I look forward to partnering with CAA on its continued success,” Stagwell Group president and managing partner Mark Penn said in a statement. “I’ve known Jae Goodman for over two decades and we share the belief that outstanding creativity is key to driving measurable business results. Jae and this team are phenomenal at delivering for clients, and I’m looking forward to our partnership.”
CAA’s consulting business, through which it represents corporate marketers including JPMorgan Chase, Intel, Bose and KPMG, remains intact under division head Greg Luckman.
“We are confident that under Mark and Jae’s leadership, and positioned alongside Stagwell’s other first-class service companies, there is tremendous opportunity to further build upon the success the group has achieved for its brand clients,” CAA president Richard Lovett said in a statement. “We are excited to remain a partner in the new venture.”