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Weinstein Co. clinches $500M deal with investor group

A consortium backed by Ron Burkle has reached an agreement to purchase assets from the embattled Weinstein Co. LLC, Variety reported March 1.

Weinstein Co. brokered a deal with Burkle and his investing partner, Maria Contreras-Sweet, with New York Attorney General Eric Schneiderman facilitating the revival of the deal that had broken down twice.

Contreras-Sweet said Weinstein Co. will launch as "a new company with a new board and a new vision that embodies the principles that we have stood by since we began this process last fall."

Under the agreement, the buyers will assume $225 million in existing debt under a credit facility and pay out $275 million in equity, of which approximately $100 million will become operating capital for the new company. The rest of the equity will be used to pay off other debts and unpaid bills, and establish a fund for victims of Harvey Weinstein's alleged sexual misconduct.

Equity holders of the old company, including WPP and Goldman Sachs, will not be included in the deal.

The new company will have a female-majority board, with Weinstein Co. Co-Chairman Bob Weinstein exiting and taking the Dimension brand with him.

The investor group will assume ownership of the studio's 277-film library, including Dimension titles. The 125 titles mortgaged in 2010 to pay off creditors will remain encumbered after the sale.

Other plans for the new company include retaining the entire Weinstein Co. workforce, expanding the Los Angeles and London offices and releasing several completed films.

The agreement comes with a 40-day closing period, according to the report.

The announcement comes less than a week after Weinstein Co.'s board said sale talks had fallen apart and that the company would prepare to file for bankruptcy.