There is more evidence than ever that the William Morris Agency/Endeavor merger is looking more like an Endeavor takeover. I also will have more news of laid-off vs safe WMA agents later today.
Since Monday, when Morris and Endeavor learned their merger wouldn’t get held up by the feds, 15% of WMA’s workforce, or 100 people, are in the process of being laid off (and I will have more names later today). But what has gone unnoticed is that Endeavor’s number of layoffs will ultimately total “only half a dozen,” according to my sources. This is astonishing, especially since most of those have been done already.
Sources also tell me that the situation was handled far differently inside much smaller Endeavor than at WMA – indicating that the two agencies are still operating separately and apparently unequally.
Tom Strickler’s departure from Endeavor was a special case. The co-founder had been expected by everyone at the agency, including Ari Emanuel, to join the combined company even though Strickler had vociferously argued against the merger. So it came as a shock when he announced his resignation just before Endeavor was voting on the merger. (As a result, that vote was unanimous.) As I previously reported, Endeavor’s Richard Abate didn’t join the merged company because of a personality conflict with WMA’s Jennifer Rudolph Walsh who will head up the new WME’s book department and is a member of the new 9-person board. But over the past month, Endeavor went to several agents like Daisy Wu, Susan Solomon and Brian Lipson, and told them they “likely” wouldn’t survive the merger. That allowed the agents to start quietly looking for jobs before they might be let go. But when their names surfaced in recent weeks as having been laid off, Endeavor kept saying, “No, they’re still working here.” I did report Wu’s departure to Gersh. Both Solomon and Lipson became managers: Solomon landed at Principato Young, and Lipson went to IPG (aka Intellectual Property Group). Some other agents were told they should step it up”.
That luxury of time wasn’t afforded the WMA agents. I have learned that, adding insult to injury, the William Morris Agency several weeks ago had pitbull Hollywood litigator Patty Glaser send ”cease-and-desist” letters to rival agencies demanding that they stop trying to hire any Morris tenpercenters. The reason for this was clear and understandable: WMA wanted to make sure it didn’t lose any of the agents it would ultimately decide were “safe” in the merger. But this also had the effect of hampering those agents who, at the time, didn’t know they were going to be laid off, from finding jobs early. One agency owner who received Glaser’s letter from WMA called it “despicable” and “inhumane”.
Another confusing inconsistency is that some WMA agents before Monday’s layoffs were being told they would be held to their contracts if there was time left and they wanted to leave, and some weren’t.
I also hear that Endeavor may not have to let any assistants go because the agency in recent months had been whittling down the number through attrition. By contrast, some assistants and other support personnel who have lost their jobs at WMA are complaining to me they’re receiving only two weeks pay, far from the “generous” severance WMA promised. But WMA today insist to me that the least amount of severance anyone is receiving is 2 months, and that’s only for someone who’s worked at agency for two years or less.
Finally, all the internal announcements about TV packages from this week’s upfronts are coming into both agencies labeled as from “WME”.
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At what point should the WMA agents (fired and otherwise) be given credit for the fact that their agency was dying? Why should we feel sorry for them getting fired or settled — they earned it. The good ones are staying, the bad ones are leaving. Sure, you will find anonymous postings that celebrate those fired and trash those kept. it’s easy to attack that way.
As for Endeavor, they are coming in to save the jobs of the 700 people WME is keeping! And, as someone who knows their finances well, i know that they are not in debt. That is simply false. The partners there have done tremendously well over the years, and this deal will bring a further windfall. they have no mortgage and have lots of packaging money coming.
This is a process, and unless you are truly inside, speculation about how it is playing out is being fueled by angry discarded agents and assistants.
Consolidation is painful. Most of these folks (agents and clients) will shuffle up and land somewhere else. And then we can all get back to making films and television programs, and take our eyes off the reps.
Has anyone questioned why new WMA trainees started this past Monday and then current staff was layed off that afternoon? Clearly someone has not thought this transition period through very well…..or do they want to weed out the over 40 crowd making twice what the trainees will make?
The poor treatment of many dedicated employees continues. Thanks Jim, I hope you can sleep at night knowing how many people’s lives you have changed for the worst.
Although consolidation and mergers are always difficult it’s the way they handled it that makes them seem seem nasty and unprofessional. Losing a job is horrible for the employee and their families but instead of thinking about that they’re giving reporters the names of people the same day employees lose their jobs so that everyone knows. That is extremely unprofessional and an undignified way to treat people who have probably worked at the company for years.
WMA was owned by a dozen people. When WMA profits hit a snag, the owners agreed to turn the company over to management, but only after they sold the real estate and pocketed the money for the owners. That signaled the end of WMA — no one with any skin in the game cared anymore.
WMA management gets a bit of a payout with this takeover.
Smartest guys in the room are the dozen old coots who owned WMA. They sold when the selling was good.
The shark feed is not over. Check back one year from now as to the makeup of WM-E. The games have only just stated.
Finally, remember there were the Big 3 just 15 years ago, with a couple of solid second tier agencies. Those agencies got gobbled up by the Big 3, and the winner of that feed-fest is…Ari and his guys, who were gobbled by ICM but got spit out a few years later.
That same process will happen now….the big dogs 10 years from now are just baby sharks in this chapter.
Susan Solomon used to be part of my “team” only she wasn’t that effective. Very very nice lady though with breath that could bring down a building. I do wish her the best of luck and I’m far better off with my new team.
this might be the best thing to happen to WMA. the team that called themselves “management” were far from adequate. there was never a sense of leadership at that company. only the feeling that several top-level agents were running the show, in an attempt to eventually usurp power from jim, dave and irv.
perhaps wma would’ve been able to exert more power in this supposed “purchase/merger”, if jim and dave were quality leaders. no doubt they have success as agents, but that track record doesnt guarantee quality leadership. dave, who chose to abuse his power and dress how he pleased and really just USE the company, was all but present, except for when there was enough complaints that he would show his face from behind his sunglasses every once in a while.
and jim…well, he is more worried about the appearance of his staff and his social status than the success of the company. rather than focus his attentions on lifting WMA out of the basement, he was more concerned that assistants were clean shaven, that agents were not sloppily put together, and that he people like him. he was also preoccupied with brokering the deal between the weinsteins and disney, than working out his own company’s issues. while relationships are key in this business, jim only cared about them for his personal gain.
i wish those that didn’t survive the layoffs good luck, as well as those who did. for i don’t see wme being a sustainable venture.
The brutality is on so many levels- today at WMA, Val Day in theatre fired her long time suffering assistant so she could take her old boss, Peter Franklin (who was fired) assistant, just so she could appear to be the new department head. This is making everyone show their true stripes
WMA “died” when Lee Stevens died.
This is the end of an era for sure, but these stories are lacking in substance. There will be a headline, which will turn out to be the entire story. I’m surprised there is nothing more on which agents are gone, where are all the assistants, floaters, friends of…, give it up! We don’t have ALL DAY!
*please no more about gasmer, irv, dave, brokaw…snore! what about that reptilian demonic spawn morgerman or corpse bride wiles?!
Since when has hollywood cared about tradition or history… references to that regarding WMA is laughable…
I should let this go as it’s at the end of an old post but i cannot help thinking about these “poor agents” who “gave their lives to WMA”. What about the talent that gave their scripts to those poor agents? The ones that were treated as though they were the next big thing — taken off the market, agented to death only to fall into oblivion when the momentum slowed down? No prob for the poor agents who had 1800 other people’s coat tails they were riding. Those agents (and some of them are my best friends) fuck each other, fuck their clients and fuck their assistants. Take a temperture check people, we usually end up where we are becuase of choices we’ve made. Own your shit and change your behavior. The rewards will come.