Talks to sell Harvey Weinstein-founded ‘The Weinstein Company’ have fallen through after initial hopes of a deal with equity firm, Colony Capital.
The Weinstein Company has been in the news on account of its founder’s legal dalliances. Harvey Weinstein recently faced a major industry-wide onslaught after a number of actresses came forward, accusing him of sexual harassment, and rape.
The Weinstein Company moved to remove Harvey Weinstein from its board of directors soon after the accusations surfaced. It later sought a deal with a U.S. private equity firm called Colony Capital. The company even entered into a preliminary deal with the equity firm. However, it now appears that the deal has fallen through.
At the time of the preliminary discussions, Colony Capital stated that it looked forward to helping The Weinstein Company return to its former glory. However, in recent times, it has re-assessed the situation and appears to have found faults with the potential investment.
Speaking to Bloomberg News in October, Colony Capital owner, Thomas Barrack stated that the company was like “a patient that’s dying on the table”.
The Weinstein Company is now attempting to reel in some alternate fish. Reports state that the company is currently in talks with another private equity firm called Fortress Investment Group. The studio has asked the firm for finances close to $35million. It hopes that this package will help the studio stay afloat till the end of January 2018.
Although The Weinstein Company is fighting its demise, it is indeed a hard battle. Losing Colony Capital’s interest is bound to come as a hard hit.
In the past, Colony Capital has invested in other ventures related to Harvey Weinstein. Among other instances, the equity firm purchased the Weinsteins’ film production company, Miramax from Disney in 2010.