The Weinstein Company has now being reported to have entered into talks with Colony Capital for a possible acquisition.
The move is expedient in the wake of the image crisis created by its founder, the Weinstein Company is looking at getting a buyer for the entertainment company.
Last week, Harvey Weinstein, the film’s company founding chief executive was exposed in various sexual harassment accusations that has tarnished his image and that of his company.
The two companies said in statement that:
The Weinstein Company (“TWC” or the “Company”) today announced that it has entered into a preliminary agreement with Colony Capital (“Colony”) to provide an immediate capital infusion into the Company. In addition, the Company has entered a negotiating period with Colony Capital for a potential sale of all or a significant portion of the Company’s assets.
TWC board member, Tarak Ben Ammar, said, “On behalf of the board, we are pleased to announce this agreement and potential strategic partnership with Colony Capital. We believe that Colony’s investment and sponsorship will help stabilize the Company’s current operations, as well as provide comfort to our critical distribution, production and talent partners around the world. Colony’s successful experience and track record in media and entertainment will be invaluable to the Company as we move forward.”
Thomas J. Barrack, Jr., Founder and Executive Chairman of Colony Capital said, “We are pleased to invest in The Weinstein Company and to help it move forward. We believe the Company has substantial value and growth potential, and we look forward to working with the Company’s critical strategic distribution and production partners to help preserve and create value for all stakeholders, including its employees. We will help return the Company to its rightful iconic position in the independent film and television industry.”
Neither the Company nor Colony will make any further comment beyond this announcement at this time.
Colony Capital is the global private equity arm of Colony NorthStar (NYSE: CLNS), an international investment firm with $56 billion in assets under management founded by Thomas J. Barrack, Jr. Since its founding in 1991, Colony has invested over $100 billion in capital. Notably, Colony has extensive experience investing in, and owning and operating similar film and television businesses to those of TWC through its successful acquisition of Miramax from The Walt Disney Company in 2010.
In addition, Colony has worked extensively with TWC through the joint venture established between TWC and Miramax in 2013 to develop and produce content from within the Miramax library. The successful repositioning and revitalizing of Miramax was completed with a pioneering focus on digital distribution platforms, including Netflix, Amazon, Apple, and Hulu.
Colony’s successful stewardship of Miramax, along with strategically targeted investment in new film and TV production allowed Miramax to create substantial value for its global distribution, production, and talent partners.
