NEW YORK, Dec 17 (Reuters) - William Morris EndeavorEntertainment LLC (WME), the talent agency backed by privateequity firm Silver Lake, is near a deal to acquire peer IMGWorldwide for around $2.3 billion, according to a personfamiliar with the matter.
An announcement on the sale of IMG could be made as early asWednesday, the person said on Tuesday, adding that negotiationswere still being finalized. The source asked not to beidentified because the talks are confidential.
Spokespeople for IMG, WME and Silver Lake declined tocomment.
IMG, whose clients include top tennis player Novak Djokovicand supermodel Gisele Bundchen and which owns the rights tonumerous sports league, would be a significant boost to WME,which already represents some of Hollywood's biggest actors.
A consortium of talent agency ICM Partners Inc and privateequity fund manager Carlyle Group LP were also finalistsin the auction, as was buyout firm CVC Capital Partners Ltd,which had teamed up with Chernin Group LLC, people familiar withthe matter told Reuters previously.
The sale of IMG is being driven by the trustee that runs theestate of Teddy Forstmann. His private equity firm, ForstmannLittle & Co, acquired IMG for $750 million in 2004.
Forstmann Little has held onto IMG for longer than a typicalinvestment period for private equity, and for years it hasrebuffed overtures from prospective buyers. Buyout interestincreased following Teddy Forstmann's departure in April 2011 asIMG chairman and CEO, and his death later that year.
Buyers that had approached Teddy Forstmann included formerYahoo CEO Terry Semel, who was willing to pay $1.5 billion in2008. Sources told Reuters at the time that Teddy Forstmannwanted at least twice the amount.
Last month, advertising agency WPP Plc CEO MartinSorrell described IMG as an asset he would love to own but saidhis company cannot afford it, as a frothy auction process pushedvaluation towards the $2.5 billion mark.
However, bidders' assessments of IMG's valuation wererevised downwards as the auction progressed and the company'searnings outlook was revised downwards.
Silver Lake acquired a minority stake in WME last year.
WPP (WPP)
