As the WMA-Endeavor merger discussions get down to a vote by the leaders of each agency, the construct of the combined agency's board is causing tension, particularly among existing WMA board members.
Knowledgeable sources said the merger proposal calls for a nine-member board for the new agency, with five seats filled by WMA board members and four by Endeavor partners. Some of those who are on the 20-member WMA board now but won't be on the new board are not happy about losing their seats at the table.
Final votes on the merger proposal are expected to be held by both agencies by the end of next week.
Despite the drama surrounding the issues of board seats, those close to the situation say it's considered likely that a majority of the WMA board will vote in favor of the deal.
The proposal outlined to WMA board members at a meeting Tuesday called for the WMA board seats to be filled by CEO Jim Wiatt, prexy Dave Wirtschafter, worldwide literary department co-head Jennifer Rudolph Walsh, chief operating officer Irv Weintraub and motion picture department head John Fogelman.
That left off the heads of WMA's top revenue-earning divisions: Peter Grosslight, who tops the highly profitable music division, and Mark Itkin, the worldwide TV co-head who spearheads the prosperous reality/cable department. Sources said as discussions continued, Grosslight emerged as one of the board members, in place of Weintraub.
Those who'll fill the Endeavor seats are no surprise -- they're widely expected to go to co-founders Ari Emanuel and Rick Rosen and powerhouse talent reps Patrick Whitesell and Adam Venit.
As word spread about the board member decision, it's understood that rival agencies made overtures to Itkin, which spurred speculation that he and others in his department could relocate to a rival shop. Insiders insist that no decisions will be made until the final details of the WMA-Endeavor merger are nailed down.
WMA needs 11 votes of the agency's 20-member board to get the deal approved. After Tuesday's presentation, insiders said aside from the issue of the board seats, there were concerns raised about the overall management structure and the promise of significant layoffs among WMA's agent ranks.
Sources said Endeavor's various department heads will retain the leadership positions in the film and TV lit and talent departments and the nonscripted TV realm. The only WMA department head who's expected to remain in that capacity is Grosslight, because Endeavor does not have a music division. Indeed, WMA's music division has been one of the key drivers of the deal and a big part of the merger appeal for Endeavor.
All eyes at WMA and Endeavor are on the composition of the board.
Contact Cynthia Littleton at
cynthia.littleton@variety.com