Wednesday, 20 February, 2019

On-Again, Off-Again Weinstein Company Sale Falls Through

Maria Contreras-Sweet the businesswoman who led the investing group had sought to keep the embattled studio in business with new majority-women leadership On-Again, Off-Again Weinstein Company Sale Falls Through
Stacy Diaz | 07 March, 2018, 11:02

The investor group previously set to buy the Weinstein Company's assets now says it's pulling out of the $500 million deal.

It is possible that Contreras-Sweet's investor group will snap up some of the studio's assets through a bankruptcy auction. Harvey and Bob Weinstein, who jointly own about 42 percent of the Weinstein Company, would receive no cash from the sale. Contreras-Sweet said she would consider acquiring Weinstein assets if they become available in bankruptcy, according to a statement Tuesday.

Contreras-Sweet's bid to buy the production house hit a first snag last month when NY state attorney general Eric Schneiderman sued The Weinstein Company, fearing that imminent sale could leave victims of the mogul's alleged sexual misconduct without adequate redress.

However, a dramatic (and presumably needed) roadblock was encountered when New York State Attorney General Erick Schneiderman filed a civil suit against The Weinstein Company and its founders, Harvey and Bob Weinstein, in order to make sure the deal did not prevent Weinstein's victims from seeking and procuring damages.

An earlier version of this article misstated the size of the budget that Maria Contreras-Sweet managed at the California Business, Transportation and Housing Agency.

A photo taken on October 13, 2017 shows a view of The Weinstein Company headquarters in Tribeca, New York City. "As a result, we have made a decision to terminate this transaction".

But on March 1, she announced the deal was back on.

"We'll be disappointed if the parties can not work out their differences and close the deal", Amy Spitalnick, the press secretary for the attorney general, said in a statement.

On Tuesday, Contreras-Sweet, hinted she may still be in the market for a film firm.

The studio's "disappointed" board of directors responded by saying they would now pursue "an orderly bankruptcy process" while working "tirelessly" to see if there are any other viable options. While Ron Burkle, a billionaire backing the investor group, had agreed last week to fund the company's operations on a weekly basis, both sides continued to argue over a payment that was due today, Variety reported. Lastly, I would like to thank Tarak Ben Ammar.

She had pledged to transform the studio into a women-led venture with a female-majority board, of which she would be the chairwoman. To that end, we will consider acquiring assets that may become available in the event of bankruptcy proceedings, as well as other opportunities that may become available in the entertainment industry.

"I'm sorry for the bad news that just came out", he wrote. "The company has been transparent about its dire financial condition". We regret being correct that this buyer simply had no intention of following through on its promises. But now, just four days after that, the deal has evaporated once again; filing for bankruptcy appears to be the company's next option.