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How This Spat Between Two High-Profile Entertainment Companies Blew Up And Why It Matters
CEO of Medialink Michael Kassan speaks at an event in Las Vegas on Jan. 5, 2023.
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Denise Truscello
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Getty Images
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Topline:
The high-profile legal clash between United Talent Agency’s Jeremy Zimmer and MediaLink’s Michael Kassan exposes the challenges underpinning media, advertising and entertainment as digital disruption continues.
Why it matters: Kassan has been a Los Angeles fixture for decades, particularly for his role in being a superconnector for the most important people in media, advertising, entertainment and technology. The company he founded, MediaLink, had been acquired by UTA in 2021, and that relationship has soured into dueling legal claims.
The future of both MediaLink and UTA’s marketing business and Kassan’s future in the business are at stake. But the larger issues at play are how old-school players are being disintermediated by automated ad buying and corporate environments that put more controls on gift-giving and lavish spending.
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The Ankler reports: In a story released earlier this week, The Ankler reported that Kassan has a much longer history of being sued than had previously been known, approximately 50 cases dating back more than 30 years. He’s also been subject to several IRS and state tax liens, including a $3.3 million one earlier in March. In addition, it revealed that he had taken out a PPP loan during the pandemic for $43,100 for his personal S corporation, despite having sold his company to a British firm in 2017 in which he received $69 million in cash.
Kassan’s claim: Kassan filed an arbitration action against UTA on March 12, citing breach of contract and fraud. He claims the agency has acted in bad faith since acquiring MediaLink for $125 million and argues that it never fulfilled various promises, including what his role would be at UTA. Kassan is seeking $25 million in damages plus attorneys fees. He also claims that he resigned on March 6, which frees him from any non-compete agreement.
UTA’s claim: UTA has made a number of allegations against Kassan, claiming that he abused corporate credit cards and used company money to pay for personal expenses, such as private jet travel; $500,000 in personal credit card debt; an apartment for his driver, and designer clothes for his wife.
The fight continues: The case is likely to be heard in a private dispute resolution, but at the moment both parties are communicating via the media.
For more . . . read the full story on The Ankler.
This story is published in partnership with The Ankler, a paid subscription publication about the entertainment industry.
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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
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