Talent agency WME/IMG creates joint venture to tap Chinese market

Beverly Hills-based talent agency WME/IMG has created a joint venture in China to expand its business in the world’s most populous country.

The deal was done with the Chinese arm of Sequoia Capital, the Menlo Park-based venture capital firm. Other investors are the Shenzhen, China-based Internet services firm Tencent and Hong Kong-based FountainVest Partners, a China-focused private equity firm.

Financial terms of the pact, which the talent agency announced Thursday morning, were not disclosed.

WME/IMG already has a significant business in China, with offices in Shanghai, Beijing and Hong Kong. Among its interests, the company represents athletes such as Chinese tennis star Li Na, stages fashion events such as Shenzhen Fashion Week, and has negotiated media rights on behalf of entities including the Chinese Super League, the highest-level professional soccer league in the country.

“The creation of this new joint venture will allow for expansion in these areas in addition to new forays into Chinese sports and entertainment,” the company said in a statement.

Other talent agencies have businesses in China. Creative Artists Agency, a rival to WME/IMG, was the first Hollywood agency to open its doors in China and has had an office in Beijing for more than a decade.

Not every U.S.-based talent agency that has tried to work with a Chinese partner has found success. In 2014, the fledgling talent agency Resolution, founded by former International Creative Management chief Jeff Berg, made a deal to sell a roughly $15-million stake to Beijing-based investment firm Bison Capital Holdings. But the deal quickly fell apart and Resolution shuttered before the end of 2014.

WME/IMG, however, is far more established than Resolution.

It was created in 2014 following William Morris Endeavor’s acquisition of IMG Worldwide for $2.4 billion. The blockbuster deal married WME’s Hollywood expertise – it is the largest agency in the business and represents a bevy of A-list stars – with IMG’s businesses in sports and marketing.

daniel.miller@latimes.com

Twitter: @DanielNMiller