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The Weinstein Company has lost Colony Capital as prospective buyer but is expected to fetch around $300 million in a sale to be completed by the end of November, an individual familiar with the negotiations told TheWrap.
There are 22 prospective buyers interested including Ron Burkle’s Yucaipa, Viacom, MGM and Lionsgate, the insider said. A condition of the sale would include the resignation of Co-Founder and Dimension Films President Bob Weinstein.
Moelis & Company Managing Director Carlos Jimenez is handling the sale on behalf of the TWC board.
After pulling $35 million in a pledged emergency cash infusion from the company, Tom Barrack’s Colony Capital is out of the race entirely, said the insider. TWC’s portfolio includes a profitable TV division and Bob Weinstein’s Dimension Films. The studio’s board of directors refused a lowball offer of $175 million for the company, worth between $400 million and $500 million, TheWrap reported.
The winning buyer would not inherit any criminal liability from disgraced former CEO Harvey Weinstein’s dozens of sexual assault accusers, the individual added. In addition to rape accusations made against the mogul, the company itself is currently saddled with a lawsuit form a Harvey accuser and from the former CEO himself.
More to come…