The private equity world, which has spent the better part of two decades rolling up advertising agencies like so many carpet remnants, has found a new corner of the industry to tidy.
Shamrock Capital has agreed to acquire a majority stake in Saylor, the Los Angeles-based creative agency, and will merge it with Mutiny, a gaming-focused shop that Shamrock already owns. The combined company will operate under the Saylor name and will be led by Will Trowbridge, Saylor's founder and chief executive.
Mr. Trowbridge, in announcing the deal, reached for the sort of language that has become obligatory in such transactions. "Brand fandom has become a need-state, not a nice-to-have," he said, adding that the merged entity would function as "an obsession engine for brands."
(One assumes the engine runs on premium.)
The theory behind the combination is not complicated: Saylor brings creative capabilities aimed at building what the industry now calls "cultural relevance," while Mutiny contributes expertise in the gaming sector, which has grown large enough to attract the attention of marketers who once dismissed it as the province of teenage boys in basements. Together, the companies will pursue clients who want, in Mr. Trowbridge's formulation, "actual fans, not just followers."
The distinction between fans and followers has become a preoccupation on Madison Avenue, or what remains of it, as brands have discovered that accumulating millions of social media followers does not necessarily translate into anyone buying anything.
For Shamrock, which has been assembling a portfolio of marketing services companies, the deal represents a bet that the agencies capable of inspiring genuine consumer devotion — or something resembling it — will command a premium in the years ahead.
The terms of the transaction were not disclosed, which in private equity circles is customary, and in this case, perhaps merciful.
Original story published in adweek.com: "Shamrock Takes Majority Stake In Saylor, Merging It With Gaming Agency Mutiny"