Ari Emanuel Reveals the $44 Million Power Play Behind WME
The Endeavor co-founder admits he plotted to oust Jim Wiatt and broke a promise to Irv Weintraub The post Ari Emanuel Reveals the $44 Million Power Play Behind WME appeared first on TheWrap .
In 2003, Ari Emanuel realized Endeavor required a merger to compete with CAA. He set his sights on William Morris Agency, a company with valuable music and publishing divisions and a prestigious name. However, William Morris CEO Jim Wiatt and COO Irv Weintraub were not interested in selling. Emanuel rejected their offer, which angered Weintraub.
Undeterred, Emanuel began negotiations in 2007. In April 2009, the companies agreed Wiatt would become chairman, while Emanuel, Patrick Whitesell, and William Morris executive Dave Wirtschafter would serve as co-CEOs. The board's voting structure gave both sides equal power. Emanuel then quietly removed Weintraub by convincing him that music chief Peter Grosslight needed his seat on the board.
He separately informed Grosslight of the plan. The boards approved the merger on April 27, 2009. However, before the deal finalized, Wiatt issued a company-wide memo demanding inclusion in calls with major studios. Emanuel decided Wiatt needed to leave immediately. Wiatt's friends negotiated a settlement, and Emanuel and Whitesell then called Weintraub.
When Weintraub invoked Emanuel's promise, Emanuel said he lacked the board votes to remain. Emanuel estimates the removal of Wiatt and Weintraub cost about $44 million, which he frames as the price of acquiring one of Hollywood's most storied institutions.
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