Media.Monks merges with LA talent agency XX Artists
S4 Capital has announced a merger between Media.Monks and influencer and talent agency XX Artists.
S4 Capital has announced a merger with LA agency XX Artists / The Drum
XX Artists counts clients such as Google, YouTube, Logitech and Ancestry.com on its roster. It was founded in 2018 and has 125 staff based in Los Angeles. The agency specializes in creating social media and influencer campaigns and strategies; it also has a talent practice that works with musicians, artists and actors.
The deal was brokered in order to “significantly expand” Media.Monks’ social media marketing abilities.
Sir Martin Sorrell, S4 Capital executive chairman, added that the “growth, diverse talent base and prestigious clients” of XX “will help fuel the development of our best-in-class social media capabilities in the United States and internationally.”
Why has Media.Monks merged with XX Artists?
Bruno Lambertini, co-founder, Media.Monks, said that the agency “understands we need to build our own ultimate all-star team.” The conditional combination, Lambertini said, would allow Media.Monks to achieve that goal.
The deal was managed by Waypoint Partners. Brett Davis, managing partner of Waypoint, explained why the business was an attractive target. “XX Artists has a unique, creator-first market positioning with a commitment to producing accessible, inclusive content intended for global audiences. The overall approach and mindset of the business stand out, informed by the artist and influencer perspective, rather than that of a marketing agency,” he told The Drum.
XX brought in a gross profit of $12m last year, according to a statement released to the London stock market this morning. It’s already set to exceed that performance in 2022.
XX Artists founder Kyle Kuhns added: “We have been fortunate to experience fantastic traction at XX Artists the last few years. In our forthcoming partnership with S4Capital and Media.Monks, we are eager to provide exciting growth, development and innovation opportunities for our people and clients alike.”
Terms of the deal were not fully disclosed, but S4 said it inked a ‘conditional combination’ agreement, which is a term used for an acquisition deal that has additional stipulations.
S4 typically makes cash-and-share deals for new companies, and part of this deal included a portion of S4 stock priced at 425p per share. S4 Capital declined to comment on the extra elements of the deal.