CAA is "expanding its presence in China" through a deal with China-based investment fund CMC Capital Partners, according to Ryan Faughnder of the L.A. TIMES. The two companies will "launch a joint venture called CAA China to capitalize on the growing Chinese entertainment market." CMC will "take an undisclosed minority stake in CAA." For CAA, the deal "marks an expansion of its business in China." The agency already has a "significant presence in the country, where it first opened an office" in '05. Details about the companies’ plans for CAA China "were sparse." However, CAA President Richard Lovett in a statement said that the venture would "'supercharge' efforts to do business in the region, including in digital media and live events" (L.A. TIMES, 4/18). The WALL STREET JOURNAL's Erich Schwartzel notes backed by its majority stakeholder, private equity firm TPG, CAA has "expanded in recent years beyond representing film and television clients." Lovett said that CAA will "look in China for deals across entertainment, including the nation’s booming sports business, as well as hunt for possible deals of its own." Lovett: "We’re looking for acquisition opportunities" (WALL STREET JOURNAL, 4/18). VARIETY's Cynthia Littleton noted CAA’s pact with CMC "follows the sports and entertainment venture" that WME/IMG set up last June with Sequoia Capital China, Chinese tech outfit Tencent and China-based private equity firm FountainVest Partners (VARIETY.com, 4/18).
