How a Deal to Sell the Weinstein Company Fell Apart
- 6 years ago
How a Deal to Sell the Weinstein Company Fell Apart
In announcing its bankruptcy plans on Sunday, the company’s board said in a statement, “While we recognize
that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice.” The studio also made public a sharply worded letter that it sent to Ms. Contreras-Sweet and Mr. Burkle on Sunday that blamed her for failing to “keep your promises” about interim funding.
After failing to find other buyers who would keep the studio intact — Lionsgate, Shamrock Capital Advisors, Killer Content
and the Qatari company beIN Media Group were among those considering various pieces — the board entered into exclusive negotiations with Ms. Contreras-Sweet’s group in late January.
Ms. Contreras-Sweet and Mr. Burkle also met with Mr. Schneiderman
and discussed plans to create a full-fledged victim compensation fund, ultimately earmarking up to $90 million.
Mr. Glasser had been expected to run the new studio; Mr. Schneiderman had pointed
to him as one of the managers who perpetuated Mr. Weinstein’s behavior.
The Weinstein Company has yet to file for bankruptcy — it said on Sunday
that a filing would happen “over the coming days” — leaving open the possibility, however unlikely, that the two sides could come to an agreement.
But the Weinstein Company’s board — or at least the three men remaining on it — said late Sunday
that the sale talks, which had been teetering since a lawsuit had been filed this month by the New York State attorney general, had fallen apart.
On Sunday, Feb. 11, Mr. Schneiderman, frustrated by a continued lack of responsiveness from the investor group to his queries, filed a lawsuit against the studio and the Weinstein brothers alleging
that they repeatedly violated state and city laws barring gender discrimination, sexual harassment and coercion.
In announcing its bankruptcy plans on Sunday, the company’s board said in a statement, “While we recognize
that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice.” The studio also made public a sharply worded letter that it sent to Ms. Contreras-Sweet and Mr. Burkle on Sunday that blamed her for failing to “keep your promises” about interim funding.
After failing to find other buyers who would keep the studio intact — Lionsgate, Shamrock Capital Advisors, Killer Content
and the Qatari company beIN Media Group were among those considering various pieces — the board entered into exclusive negotiations with Ms. Contreras-Sweet’s group in late January.
Ms. Contreras-Sweet and Mr. Burkle also met with Mr. Schneiderman
and discussed plans to create a full-fledged victim compensation fund, ultimately earmarking up to $90 million.
Mr. Glasser had been expected to run the new studio; Mr. Schneiderman had pointed
to him as one of the managers who perpetuated Mr. Weinstein’s behavior.
The Weinstein Company has yet to file for bankruptcy — it said on Sunday
that a filing would happen “over the coming days” — leaving open the possibility, however unlikely, that the two sides could come to an agreement.
But the Weinstein Company’s board — or at least the three men remaining on it — said late Sunday
that the sale talks, which had been teetering since a lawsuit had been filed this month by the New York State attorney general, had fallen apart.
On Sunday, Feb. 11, Mr. Schneiderman, frustrated by a continued lack of responsiveness from the investor group to his queries, filed a lawsuit against the studio and the Weinstein brothers alleging
that they repeatedly violated state and city laws barring gender discrimination, sexual harassment and coercion.