Creative Artists Agency is "teaming up with Chinese media mogul Li Ruigang to create a new media and entertainment venture in China," according to Shannon Bond of the FINANCIAL TIMES. CAA China will be majority-owned by CAA in partnership with Li's China Media Capital. CMC will also make a "small minority investment" in CAA, whose majority owner is U.S. private equity group TPG. Li will join CAA’s board. The companies "did not disclose financial details of the deal." The new venture expands on CAA’s existing operations in China, which began in '05. The agency represents a "high-profile range of Chinese stars" including Zhang Yimou, "one of the country’s best known directors," and Taiwanese supermodel and actress Lin Chi-ling. Li, meanwhile, is "often described as the most connected person in Chinese media." He has built a "broad empire in part by teaming up with big Hollywood companies looking to enter the country’s entertainment market." CMC holds stakes in IMAX China and joint ventures with Comcast’s DreamWorks Animation and Warner Bros. He also owns 13% of Man City. China's entertainment industry "has boomed in the past decade." Rising domestic demand for films, sports and other popular fare has fueled "the interest of Hollywood studios looking to reach new audiences" (FT, 4/18). In L.A., Ryan Faughnder reported CAA already has a "significant presence in the country." Details about the companies' plans for CAA China "were sparse." However, CAA President Richard Lovett 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). In N.Y., Erich Schwartzel reported backed by 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). In L.A., Cynthia Littleton reported 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, 4/18).
