Talent agency A3 sells assets to Gersh as legal battle continues
For the record:
6:27 p.m. Jan. 10, 2024: An earlier version of this article gave the incorrect number of A3 employees remaining after the Gersh deal. The agency has about 100 employees remaining, not 45.
As its leaders continue to battle each other in court, A3 Artists Agency has sold its digital and alternative content departments to talent agency Gersh, both companies announced Tuesday.
Under the deal, 45 employees at A3, including 25 agents from its digital and alternative departments, will join Beverly Hills-based Gersh, bringing the latter firm's staff to more than 300 people. A3 has offices in New York and Los Angeles.
Financial terms were not disclosed.
"The combined resources and expertise within the agency will unlock unparalleled opportunities for our clients,” said Bob Gersh, David Gersh and Leslie Siebert, co-presidents of Gersh, in a statement.
Read more: A3 Artists Agency chairman Adam Bold sued over alleged misconduct
The deal comes after two of A3's partners, Brian Cho and Robert Attermann, sued the agency's majority owner Adam Bold last month to try to block the transaction.
Cho and Attermann in their lawsuit said that Bold sexually harassed employees and irresponsibly spent the agency’s funds. Additionally, Cho and Attermann alleged that they were misled and pressured into amending an agreement that would give Bold the ability to negotiate the sale of A3 without their involvement.
Bold denied the allegations, saying he did not sexually harass employees and that the negotiations for amending agreements were overseen by attorneys on both sides. He also said that some of the spending occurred prior to knowing that the COVID-19 pandemic and dual Hollywood strikes would cause work stoppages that would hurt the industry.
A3, like other talent agencies, suffered financially as productions were delayed or suspended during the actors' and writers' strikes last year, which lasted a total of six months.
"The Gersh transaction has given us the security for A3 to be financially viable," Bold said in an interview.
Read more: The strikes are over, but Hollywood's lost year is a tipping point for the industry
"Now that this is completed, we’re going to first consult with the rest of the A3 family from assistant up to assess what they want for their future and then we’re going to decide what to do," Bold said. "Nobody is going to be left high and dry."
A3 said it has about 100 employees remaining after the deal.
Cho and Attermann's attorney did not immediately respond to a request for comment on the Gersh deal.
The transaction comes as other talent agencies and management firms are consolidating. In 2022, Century City-based Creative Artists Agency bought ICM Partners, the fourth-largest Hollywood talent agency. In September, L.A. representation and marketing firm Wasserman acquired Brillstein Entertainment Partners for an undisclosed amount.
This story originally appeared in Los Angeles Times.
