THE FIRM, SPIVAK/SOBOL MERGE

Ending weeks of speculation that a management merger was afoot, The Firm has announced that music management company Spivak/Sobol Entertainment is joining forces with the broad-based entertainment management house.

Financial details of the deal were not revealed. Spivak/Sobol principals Arthur Spivak and Stu Sobol and their team of managers will reportedly relocate to The Firm offices in Beverly Hills, bringing with them clients including A Perfect Circle, Queens of the Stone Age, Vanessa Carlton, Three Days Grace, Yellowcard and The Distillers.

The move follows investments in The Firm by private equity firms Bain Capital and Thomas Lee, and suggests a more aggressive posture for the agency, which has also branched out into TV/film production and retail branding with Virgin Cola and Pony footwear.

"Given the changing and consolidating entertainment landscape, it is more important than ever that artists and their concerns be better represented," said The Firm founder/CEO Jeff Kwatinetz. "By pooling our resources, we can strengthen and better leverage artists' issues. As we redefine the role of manager, it is imperative that the artist community works together to better strengthen their place in this shifting climate. I've known Arthur and Stu for years and have always admired their hard work in championing their artists' rights. It is with the greatest respect that I welcome Arthur, Stu and their team."

Said Spivak and Sobol in a statement, "Over the past dozen years we have seen lawyers, agents and business managers consolidate in the entertainment industry, and we knew that it was just a matter of time before the managers would as well. We feel that it is time that more control be put into the hands of the artists to combat the continued growth of the entertainment monoliths. We have known Jeff as both a good friend and a fierce competitor for the past 10 years, and it makes all the sense in the world to merge all of our assets and efforts in giving our artists the ability to better navigate the new waters of the entertainment business."

Spivak and Sobol formed Spivak/Sobol Entertainment in 1996. Prior to that, Spivak spent more than two decades in management, while Sobol held record label jobs in promotion and A&R.

The Firm was founded in 1997 by Kwatinetz with the goal of becoming the world's largest and most diverse entertainment management company. Led by Kwatinetz, Chairman Rich Frank, Co-Chairman Rick Yorn and President Dave Baram, the company's interests include music, film and television talent management, film and television production and lifestyle brand management, including Pony and Virgin Cola, which The Firm owns.