CREATIVE Artists Agency (CAA) is in advanced talks to sell a majority stake to French billionaire Francois-Henri Pinault in a deal that could value the Hollywood talent agency at over US$7 billion, according to a person familiar with the matter.

CAA’s talks with luxury sector tycoon Pinault, the CEO of Gucci-owner Kering and the husband of actress Salma Hayek, could end without agreement, the source said, adding that a final decision has not been made.

If the talks conclude successfully, the deal would mark a big win for private equity firm TPG, which first invested in CAA in 2010. In 2014, TPG increased its stake to 53 per cent in a deal that valued the agency at US$1.1 billion.

Founded in 1975, CAA was at the forefront of packaging Hollywood actors, directors, writers and others for films and television shows during the 1990s, when it boosted revenues and sewed up talent to became the most powerful talent agency in entertainment.

The Los Angeles-based agency represents thousands of actors, directors and music artists. Its client roster includes Tom Hanks, Zendaya, Steven Spielberg, Ariana Grande and Beyonce.

The agency branched into representing athletes in 2006.

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The sale talks coincide with a strike by Hollywood actors after talks with studios broke down, joining film and television writers who have been on picket lines since May and deepening the disruption of scores of shows and movies.

CAA did not immediately respond to a request for comment, and spokespeople for Pinault and for TPG declined to comment. A Kering spokesperson said the company had no involvement in the talks.

In 2021, CAA announced a deal to buy major Hollywood rival ICM Partners.

Bloomberg first reported the talks between Pinault and CAA. REUTERS