• by Steve McClellan  @mp_mcclellan, July 11, 2013

The “Madison and Vine” connection just got stronger with word that Hollywood talent agency William Morris Endeavor is acquiring just under half -- 49% -- of David Droga’s namesake agency Droga5 for $225 million.

Executives at both companies said the link-up would benefit the joint client rosters by providing access to exceptional talent and a broad range of resources.

“Droga5 has always endeavored to be the most influential creative agency in the business, with ideas that move our clients and our industry forward,” stated David Droga, founder and creative chairman, Droga5. “This partnership will exponentially accelerate our ability to realize that ambition.”

WME co-CEOs Patrick Whitesell and Ariel Emanuel stated that “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.”

The link between brands and content creation goes back decades. Indeed, many early TV shows, like the Texaco Star Theater, were sponsored by a single company. But in the last decade, efforts to integrate brands and products into entertainment content have taken on greater urgency as technology has given consumers a greater array of media choices and the ability to disengage from traditional ad vehicles. 

Marketers have focused more intently on telling stories via content to produce what they hope are positive consumer experiences with their brands.

The Droga5-WME deal is just the latest direct tie between Hollywood and Adland. A few years back, WPP invested $25 million in film producer The Weinstein Company in exchange for a “first look” at branded entertainment opportunities among other benefits. All of the holding companies have some sort of branded entertainment capabilities.

The Interpublic Group of Companies at one point had an investment in Endeavor Marketing Solutions, part of the talent agency Endeavor before its merger with William Morris. However, that tie no longer exists, an IPG rep confirmed.

Ironically, it was current Droga5 client Coca-Cola that made headlines back in the 1990s with its own tie to a Hollywood agent: WME archrival CAA. Coke enlisted CAA to create new ads for the brand. It was a relationship that drove fear in Adland that talent agencies might take over their business. Now, it seems agencies, or at least Droga5, are welcoming them into the tent.

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