Ascential, owner of the Cannes Lions International Festival of Creativity, has sold its MediaLink strategic and advisory arm to United Talent Agency (UTA) for $125 million in cash.

As part of the deal, MediaLink Founder and CEO Michael Kassan joins UTA as a partner and will continue as CEO of MediaLink. UTA's entertainment and marketing consultancy division, UTA Marketing, will become a division of MediaLink called UTA Entertainment & Culture Marketing, and its co-heads David Anderson and Julian Jacobs will also join the executive leadership team of MediaLink. 

MediaLink, which was founded in 2003, will continue to maintain its offices in New York, Los Angeles, Chicago and London. According to UTA,  no job losses are anticipated as a result of the acquisition, and it expects the company to continue to hire and grow. 

"The combination of UTA and MediaLink creates an unparalleled offering operating where strategy, culture, entertainment, marketing and technology intersect," Kassan said in a statement. "We will optimize our complementary strengths to the benefit of our clients and exponentially expand the opportunities available to them. What's more, MediaLink will be deeply immersed in a creator culture represented by UTA—one that pivots on entrepreneurship and an unwavering passion for artists, entertainment and media. Our two companies operate at the same intersection and share the same vision. It's a perfect fit." 

"We have watched Michael Kassan steadfastly build his company over the years,” said UTA Chief Executive Officer Jeremy Zimmer. “What seemed at first to be an amazing one-man band has become a first-class, global consulting firm with powerful colleagues, deep expertise and unparalleled relationships."

Ascential acquired MediaLink in 2017 as part of its marketing segment. As Ad Age reported at the time, Kassan signed a four-year contract as part of the deal, but he said he told Ascential CEO Duncan Painter when they shook hands, "I never want to carry another business card."

However, since then, the pandemic has hit Ascential hard with the cancellation of key events including Cannes Lions in 2020 and the awards being held as a virtual event in 2021. The company reported steep financial losses for 2020, with revenue falling 31% to $367 million. Although Ascential's half-year results in July showed revenue growth of 37%, Cannes Lions revenue in the first half of the year amounted to roughly half of their worth in the equivalent period in 2019. 

MediaLink's business has grown strongly in 2021, with the firm reporting 35% revenue growth in Ascential’s half-year results. Ascential also stated that the sale is consistent with the group's long-term strategy, and will allow “further allocation of capital to areas of the business with strong recurring, data-driven, revenue characteristics." These include its recently acquired digital commerce assets, including commerce optimization business OneSpace in September, and its investment in ad tech firm Hudson MX in February this year.

“We are pleased that MediaLink has found an excellent home, in UTA, that will leverage its uniquely talented team while further developing its specialist advisory services in the media and marketing ecosystem.” said CEO Duncan Painter in a statement. ”For Ascential, this transaction will enable accelerated investment in data-driven, subscription revenue streams, while also continuing to simplify the focus of the Group overall."