William Morris board set to discuss merger with Endeavor

The board of talent agency William Morris is set to discuss the potential merger with rival Endeavor at a meeting scheduled for today, and Endeavor’s partners are expected to follow suit shortly, according to people close to the situation.

Although the ongoing talks have generated lots of attention and media scrutiny, a merger of the two competing talent shops is hardly Microsoft marrying Apple: Combined, the agencies would have estimated annual revenue of about $300 million.

But by joining forces, William Morris and Endeavor would create a talent juggernaut positioned to challenge Creative Artists Agency, which represents many of the biggest stars in Hollywood. The combined William Morris/Endeavor agency would also, in theory, have greater leverage in negotiating with the TV and movie studios, extracting better deals on behalf of clients.

Driving the merger is a punishing economic climate in which fewer jobs for actors, directors and writers and a contracting market for TV shows and movies mean lower commissions and fees for the agencies that depend upon them.

Although talks are progressing and some Hollywood insiders think a deal is a fait accompli, myriad unresolved issues could scuttle or delay a merger. However, with William Morris chief Jim Wiatt and Endeavor partner Ari Emanuel aggressively pushing for the merger, it seems to be more a matter of when rather than if, people familiar with the matter said.

How a combined William Morris/Endeavor would be structured is one of the biggest sticking points. Both agencies have managements stocked with big egos and pocketing hefty paychecks. A merger is likely to lead to a thinning of the employee ranks and a bake-off among executives, with many agents looking to work elsewhere or being forced out, according to insiders.

--

dawn.chmielewski@latimes.com

joe.flint@latimes.com