Disney breaks off negotiations with Weinsteins for Miramax




Walt Disney Co. has given notice that it is breaking off negotiations to sell Miramax Films to an investor group that included Miramax founders Harvey and Bob Weinstein,

the

Wall Street Journal

reported.

Brothers Alec and Tom Gores — Los Angeles brothers who are being advised by a third brother, Sam, who runs the Paradigm talent agency — are seeking a deal under which Miramax would be linked with Overture Films, a small studio currently owned by Liberty Media Corp., the article said.

The Weinsteins’ $625 million bid, backed by Ron Burkle’s Yucaipa Cos., fell through because of “the complex structure of the acquisition,” the

Journal

reported. The Goreses’ bid is estimated at about $550 million, the article said.

The Weinsteins founded Miramax in 1979 and sold it to Disney in 1993. Their relationship with Disney soured, and they were forced out in 2005, going on to found Weinstein Co.

The Weinstein-Disney negotiations had initially been expected to take just a week or two to conclude. But the complex, multiparty talks dragged on for six weeks before they stalled, apparently permanently.

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(Source:

Wall Street Journal,

May 26, 2010.)

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