Presidential hopeful and New York businessman Donald Trump sold the Miss Universe Organization to WME-IMG, a talent agency, after months of controversy surrounding his stake in the pageant.
The announcement comes just days after Trump tweeted he bought out NBC’s stake in the pageant network.
Just purchased NBC’s half of The Miss Universe Organization and settled all lawsuits against them. Now own 100% — stay tuned!
— Donald J. Trump (@realDonaldTrump) September 11, 2015
John Koblin of The New York Times had the story:
Donald J. Trump has sold the Miss Universe Organization to the talent agency WME-IMG, the company announced on Monday.
The sale, the financial terms of which were not disclosed, came after a rough summer for the organization’s Miss USA beauty pageant in which two television partners dropped the broadcast in response to comments Mr. Trump made about illegal immigrants during his presidential campaign.
NBC, a part owner of the Miss Universe Organization, backed out of the broadcast and also said that Mr. Trump would not be welcomed back as the host of “The Celebrity Apprentice.” (NBC announced Monday that Arnold Schwarzenegger would replace him). Mr. Trump filed a $500 million lawsuit against the pageant’s other television partner, the Spanish-language broadcaster Univision.
“When I purchased the pageants many years ago, they were in serious trouble,” Mr. Trump said in a statement. “It has been a great honor making them so successful, and I have really enjoyed watching the pageants grow throughout the U.S.A. and worldwide.”
The Los Angeles Times’ Yvonne Villarreal provided some background on Trump’s recent turmoil with the pageant:
As a memory refresher: Trump and NBCUniversal’s joint venture in the organization began in 2002. Univision, meanwhile, was set to begin a five-year deal for the Spanish-language rights to the Miss USA pageant with the July 12 telecast. However, both networks refused to air the pageant after Trump, a candidate for the Republican presidential nomination, made controversial comments about Mexican immigrants. Trump then filed lawsuits against both networks.
The pageant ultimately aired on ReelzChannel — and finding a new TV partner for the pageant will be on the to-do list for WME/IMG.
Beverly Hills-based William Morris Endeavor and private equity firm Silver Lake Partners purchased New York-based IMG Worldwide in December 2013 for $2.3 billion in a bid diversify holdings by targeting sports. The wide-ranging agency also operates IMG Models.
Nathalie Tadena of The Wall Street Journal explained why WME-IMG would want to acquire the pageants:
NBCUniversal, a unit of Comcast Corp., had ended its business relationship with Mr. Trump in June and said it would no longer air the Miss Universe and Miss USA pageants following controversial remarks Mr. Trump made about Mexican immigrants during a campaign speech. Spanish-language broadcaster Univision also ended its business relationship with Mr. Trump for the same reason.
WME/IMG, which was formed in 2013 by the merger of talent agencies William Morris Endeavor Entertainment and IMG Worldwide, said the deal expands its portfolio of global events and media properties. IMG has served as executive producers of the Miss Universe and Miss USA pageants in the past. The Miss Universe pageant is distributed in more than 190 countries and seen by more than half a billion viewers annually. WME/IMG said it does not have a TV partner for the pageants at this stage.
“Having worked closely with The Miss Universe Organization in the past, we understand the incredible potential of the events and the star-quality of the participants,” said WME/IMG Chief Content Officer Mark Shapiro. “The global reach of The Miss Universe Organization and the content opportunities presented by the pageants make this a strong, strategic addition to our portfolio.”
According to Mr. Trump’s financial disclosure forms with the Federal Election Commission, The Miss Universe Organization has a value between $5 million and $25 million.
Ellen Killoran of Forbes pointed out the new owner’s next hurdle:
It’s easy to imagine that NBC let the pageant go for a reasonable price: The Miss Universe and Miss USA telecasts typically perform reasonably well, but they’ve never been the bread and butter for the network. Miss USA ratings have been on a downward trend since 2005.
Though it will likely be easier without Trump attached, WME/IMG now carries the daunting challenge of finding a broadcaster for the pageants, which could prove particularly difficult given the recent controversy surrounding them.
Of the major broadcasters, Fox has the lowest risk of alienating its existing audience by acquiring the media rights to the pageants. Its conservative-leaning viewer base is more likely to be forgiving of the xenophobic, misogynistic sensibilities associated with the pageant’s former owner and the pageant itself. Still, Fox broadcasting has a hit on its hands with the scripted series Empire , and it’s the network’s turn to carry the Emmy broadcast this year. It just not might be worth the headache.
