Bob and Harvey Weinstein of Weinstein Co. are nearing a deal to acquire Miramax Films from Walt Disney Co.,
the
Wall Street Journal
reported.
The deal would include access to most of Miramax’s film library, the article said.
The brothers founded Miramax in 1979 and named it for their parents, Max and Miriam Weinstein. The brothers sold it to Disney in 1993 and left in 2005 to start their current film studio…. Disney in recent months had shut down virtually all new production under the Miramax label, with just a handful of films left in its release pipeline.
The Weinsteins’ bid is backed by Los Angeles billionaire Ron Burkle, the article said. They reportedly are offering about $600 million for Miramax.
In a separate report, the
Journal
noted:
Success has eluded the Weinsteins in their independent venture…. Weinstein Co. released a string of bombs, punctuated by a smattering of hits. The company suffered through round after round of layoffs and strategic restructurings. The brothers initially wanted to expand their company into a media empire, rather than focus on the film business, and they got distracted by investments in a social-networking site as well as a clothing line — neither of which paid off as initially hoped.
Update:
In a later report,
the
Wall Street Journal
said that “under the transaction currently being discussed,” the Weinsteins’ backers, led by Ron Burkle’s Yucaipa Cos., would actually own Miramax Films. “The Weinsteins, either as individuals or through their Weinstein Co. studio would manage the library in exchange for fees.” Although the brothers would have “a key role in overseeing the company” and could have access to some of their franchises, “that arrangement is a far cry from outright ownership,” the
Journal
report said.
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(Sources:
Wall Street Journal,
April 19, 2010;
Wall Street Journal,
April 21, 2010.)
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