Supporting content game plan
NEW YORK, July 12, 2013-Indie agency group Droga5 has sold 49% of the company – not to the industry’s holding company behemoths that came calling but to a company with Hollywood connections, offering a hint of what founder David Droga sees will matter to communications companies going forward.
William Morris Endeavor, the storied talent agency that represents Lady Gaga, Oprah Winfrey, Alicia Keys among others, is expected to pay more than US$100 million for the shop, which had estimated 2012 revenues of just under $60 million.
There are synergies for both sides: For Droga, the partnership will provide access to WME’s unrivaled resources and relationships across the global entertainment industry, as well as its growing portfolio of assets in the technology, media and marketing sectors for clients such as Coca-Cola, Mondelez International, Motorola and Spotify and provide greater access to star power.
“Droga5 has always endeavored to be the most influential creative agency in the business, with ideas that move our clients and our industry forward,” said David Droga, founder and creative chairman, Droga5. “This partnership will exponentially accelerate our ability to realize that ambition.”
In a previous multi-awarded campaign ‘Decode Jay-Z with Bing’, the agency worked with the rapper on an integrated, content-drive campaign to lift Microsoft’s search engine Bing in the rankings.
The deal will also bring William Morris client roster to advertisers and provide a competitive edge against talent agency rival CAA. The latter launched its marketing group CAA Marketing, an agency that went on to win two Cannes Grand Prix in 2012 for Chipolte’s animated ‘Back to the Star’ video.
“Droga5 is best-in-class across the board—from its management to its creative output. Through this investment, we will be able to join the best artists and storytellers from all verticals, and we look forward to creating new opportunities for our collective clients,” said WME co-CEOs Patrick Whitesell and Ariel Emanuel.
WWE has a global roster of the most prominent artists, performers and content creators. In recent years, WME, backed by Silicon Valley private equity firm Silver Lake Partners, has made strategic investments in companies across the digital media landscape, including the interactive advertising, social media, social gaming and online retail sectors.
