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United Talent Agency has formed a strategic partnership with Investcorp that will be focused on investing in companies in the culture and technology space, the agency exclusively tells Tim. 

Why it matters: This keeps UTA in business with Investcorp and matches two big, global players in their respective sectors. Investcorp sold its stake in the agency to EQT over the summer. EQT's investment in UTA is reportedly worth $800 million.

Details: Called UTA.VC, the partnership will specifically focus on investing in areas like the creator economy, web3 and the future of entertainment.

The partnership will be led by Investcorp's Anand Radhakrishnan and UTA's Caroline Jacobs, Clinton Foy and Sam Wick.

"The strategic partnership builds on our successful previous investments in companies — such as Pluto.TV, Radish, ART19 and others," Wick and Foy said in a statement.

The big picture: UTA and Investcorp have had a fruitful relationship since the firm first bought a minority stake in 2018.

When Investcorp sold its stake in UTA in July, the firm called it "a highly successful investment" and said that since 2018, UTA had more than tripled its EBITDA.

During Investcorp's four years as a stakeholder, UTA acquired Klutch Sports, Digital Brand Architects, MediaLink and Curtis Brown Group.

The bottom line: UTA has had a VC division since 2014 and is looking to supercharge those efforts to compete with agency goliaths Endeavor and CAA.

Other companies in UTA Ventures' portfolio include Cameo, Consensys, MasterClass, Patreon and Pietra.

1 big thing: UTA reteams with Investcorp 

Illustration of two hands shaking with money shapes and textures surrounding them

Major League Baseball has signed a sponsorship deal with cannabis brand Charlotte's Web, becoming the first major U.S. league to sign a CBD sponsor.

Why it matters: As with gambling, the increasing legalization of marijuana use opens another once-taboo category for sports. Expect other leagues to quickly follow suit, Tim writes. 

Details: Charlotte's Web's deal makes it the "Official CBD of MLB" and covers this year's playoffs and the next three years. 

The company will launch an MLB-branded line of CBD products and will have signage during the playoffs and World Series games. 

Sports Business Journal first reported the deal and describes the agreement as "non-traditional," with a rights fee and revenue sharing. MLB also gets shares in Charlotte's Web Holdings, which trades on the Toronto Exchange. 

This is Charlotte's Web's second major sponsorship deal. In June, it signed as the official CBD sponsor for NWSL club Angel City FC. 

"We are excited about the possibilities this partnership offers as CBD becomes a more widely adopted part of the health and wellness regimen of our players and fans," MLB chief revenue officer Noah Garden said in a statement.

Catch up quick: MLB announced in June it would allow teams to start selling CBD sponsorships. 

The companies have to be certified by the testing organization NSF that their products do not have psychoactive levels of THC. 

The UFC signed its first CBD deal in 2019 with Aurora, and last year signed a five-year deal with Love Hemp. Earlier this year, NASCAR's Richard Childress made 3Chi the racing league's first CBD car sponsor. 

2. The BFD: MLB's new trail-"blazing" sponsor 

Illustration of a silhouette of someone smoking weed

Metaverse and web3 expertise captivated an audience of marketers specializing in digital out-of-home ads at the DPAA Global Summit yesterday, Kerry writes. 

Why it matters: While metaverse has become a buzzword that's somewhat lost meaning, many marketing executives seem to have a genuine interest in investing in the business.

Details: At the event, Adidas Originals' VP of brand communications Erika Wykes-Sneyd presented on the company's NFT drops, partnership with the Bored Ape Yacht Club and other web3 work. 

"This is not a marketing activation for us," Wykes-Sneyd said. "It can be that, but we're really going to turn it into a business driver."

After the 25-minute presentation, an audience member asked how companies could explore similar work and if it required hiring one person with a $1 million salary, pulling from a recent Bloomberg report. 

Wykes-Sneyd said that Adidas' efforts began with a task force of interested individuals already at the company. This came after Elon Musk tweeted last year that Tesla will accept bitcoin payments.

The bottom line: "There's a real hopefulness and opportunity in the space," Wykes-Sneyd said. "Start to look past [the negativity] because once you do, you will be more unlocked to the opportunities this younger generation is really, really searching for. They're going to make it happen with or without us."

Overheard at the DPAA Global Summit

3. Overheard: DPAA Global Summit

Slide from Adidas' presentation on its web3 and metaverse efforts at the DPAA Global Summit in New York on October 10, 2022.

A slide from Adidas' presentation at the DPAA Global Summit. Photo: Kerry Flynn/Axios

Nielsen completed its sale, valued at $16b, to a private equity consortium led by Elliott Investment Management and Brookfield Business Partners. https://axios.link/3VixLgR

Homa, a French provider of mobile gaming dev tools, raised $100m in Series B funding. Quadrille Capital and Headline co-led, and were joined by Northzone, Fabric Ventures, Bpifrance, Eurazeo and Singular. https://axios.link/3EAdqxy

Nxyz, a web3 indexing platform founded by ex-Google ad boss Sridhar Ramaswamy, raised $40m in Series A funding. Paradigm led, and was joined by Coinbase Ventures, Greylock Partners and Sequoia Capital. https://axios.link/3Mnaruo 

Scale3 Labs, a San Jose, Calif.-based web3 infrastructure startup, raised $5.3m in seed funding. Redpoint Ventures led, and was joined by Mysten Labs and Howard University. https://axios.link/3fZa6C5

Neon, a New York-based production company, has closed a revolving credit facility with Comerica Bank that will help it "aggressively" expand its production slate. https://axios.link/3VkG6R3

4. Deal flow

Carsey-Werner Television promoted Paul Schreiber to president, North America. https://axios.link/3MlLDmB

Comcast promoted CFO Mike Cavanagh to the added role of president. https://axios.link/3yC6s7E

Lionsgate signed a new deal with John Drake to remain as chairman of its Motion Picture Group. https://axios.link/3emvvEC

Netflix named a trio of execs to fill the role left by ex-Adult Animation chief Mike Moon. HBO Max's Billy Wee was named director of adult animation, comedy series. Jermaine Turner was promoted to director of adult animation action series. Former Disney exec Maggie Malone will join as VP of animation film. https://axios.link/3g0dbSk

Webtoon hired longtime Warner Bros. executive Jessica Turner as SVP, marketing. https://axios.link/3TisOmC

5. Movin' on up (or out)

Meta partners with NBCUniversal to bring you into 'The Office' (TechCrunch)

"As part of a multiyear partnership with NBCUniversal, NBCUniversal's streaming app Peacock is coming to the Meta Quest virtual reality headset. ... This partnership could help Meta capitalize around existing fandoms to get them to buy VR headsets," Amanda Silberling writes.

Meta wants you to work in virtual reality. Here's what that's like (Bloomberg)

"Event etiquette in VR is still under development too, it seems. I had to move to avoid overhearing some of the dozen people in my room talking during the presentations, and one poor soul with a stuffy nose relentlessly sniffling and blowing it," Alex Barinka writes. 

Warner Bros. TV Group shutters short-form shingle stage 13, ends its TV workshop programs in cost-cutting move (Variety)

"The Warner Bros. Writers' Workshop's current 2022–23 edition will mark the end of the Warner Bros. Television Workshop program, including both the writers' workshop and the directors' workshop. The training ground had long been a coveted slot for up-and-coming creative talent looking to break into the industry," Michael Schneider writes.

6. Channel surfing

Illustration of a pair of sunglasses with lenses that look like tv screens.

📺 Situational awareness: Apple has been speaking with media agency executives about plans to run ads in its original video content, Digiday reports. 

@tim_bays: MLB Playoffs. Still not over the Mets, but the games overall have been great. 

@kerrymflynn: "She-Hulk" on Disney+. When I saw the trailer debut at Disney's upfront, I thought I'd despise this show. Turns out it's awesome. 

✏️ Thanks to Michael Flaherty for editing and Katie Lewis for copy editing this newsletter.

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October 12, 2022

1 big thing: UTA reteams with Investcorp