Silicon Valley Breaks Itself

PRESENTED BY BABBEL

Happy Wednesday, Future Party. Well, the ice has melted… and the release date of Drake’s new album Iceman has officially been uncovered. Streamer Kishka hammered away at the massive ice structure Drake set up in Toronto and pulled out a blue bag containing a note that read “May 15.” At least there was no need to wait for all the ice to melt to find that out.

Everyone from AAA talent firms to newly launched media shingles is making bids for the management giant formerly known as Wasserman (now rebranded as The Team).

Why It Hits: The Team controls one of the biggest, most starry rosters across sports and music, repping superstars like Coldplay, Kendrick Lamar, and soccer MVP Alex Morgan. Selling the company as a whole would set the stage for what could be the biggest bidding war ever in the talent-representation space. But the possibility of a breakup, with parts sold to multiple suitors, could set off a year of disparate dealmaking.

Behind The Curtain: After a two-month deadline, offers for The Team are officially in.

Closing Thoughts: Casey Wasserman had little choice but to explore a sale after his name surfaced in the Epstein files, which included past, flirtatious email exchanges with Epstein co-conspirator Ghislaine Maxwell. While the LA28 Olympics Committee elected to keep him as the head of that organization, the talent he represents hasn’t been as forgiving — high-profile acts like Chappell Roan, Laufey, and Local Natives headed for the exit.

Prediction: Wasserman and Moelis would likely prefer to sell the whole company outright. But recent acquisitions like Paradigm’s music division and the Brillstein Entertainment film and TV management company may attract broader interest and be easier to spin off first.

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The hottest acquisition targets in Silicon Valley have suddenly become news and media startups.

The Big Picture: Recently, the tech industry has had an adversarial relationship with traditional news organizations and the ecosystem of influential digital outlets. But with a sudden rise in newsfluencers across social platforms, tech titans are discovering new voices with a much rosier view of their work… and are now paying handsomely to support that growth.

Behind The Scenes: The theme of Silicon Valley’s newfound love of media: if you can’t win them over, disrupt them.

Final Broadcast: While the tech elite would pitch their association with these shows as creating an inside-baseball space to talk shop and connect with fans, many view it as the installation of mouthpieces for company talking points. It doesn’t help with optics that TPBN will report to OpenAI’s chief global affairs officer, Chris Lehane, and will support the company’s marketing and communications.

While companies are well within their rights to form their own propaganda press channels, the risk is that they become echo chambers that shape their societal narrative… while leaving professional journalists on the sidelines.

The Future: Prepare for these shows to juice activity on prediction markets, essentially creating a version of r/WallStreetBets that roots for the big guy.

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78.1% of you voted Didn’t engage this year in yesterday’s poll: How did you engage with Coachella this year?

“In my opinion, Coachella jumped the shark years ago.”

“Early on, it was cheaper and great. Now it’s overpriced and full of influencers and celebs — and those who want to be celebs, even for 15 minutes.”

“I have been in the past, but watching it on YouTube is cheaper, has less dust, and I’m way less likely to get heat stroke.”

“Bieberchella from the couch, babyyy!”

Let’s keep the conversation going. Join Poll Of The Day, so your opinions can shine. Discover how your views line up with your peers’, check out cool insights, and have some fun. It’s data with personality.

🎞️ Clockwork, Warner Bros.’ new independent label, struck a $22 million deal to make Sean Baker’s Anora follow-up, Ti Amo!

🎮 Microsoft is slashing its Xbox Game Pass monthly subscription from $30 to $23 and will wait to add new Call of Duty titles until a year after their release.

📺 Stand-up comedy studio 800 Pound Gorilla is launching a premium streaming service featuring new specials from comedians like Pete Holmes and Patton Oswalt.

💻 This year’s Webby Award winners include Bad Bunny, SNL50: The Anniversary Special, Heated Rivalry, and Colin & Samir.

💰 Fixated, a startup focused on helping creator’s media companies, has acquired Studio71 for an undisclosed price.

🤳 Elisabeth Murdoch and Jane Featherstone’s Sister Group is acquiring digital creator company After Party Studios.

⚾ Ari Emanuel’s MARI has scooped up Collect-A-Con, an events business focused on the collectibles industry.

💄 Estée Lauder is raising up to $6 billion to fund a merger with Puig.

🛋️ IKEA wants to blow up your living room.