Post by The Ultimate Nullifier on Oct 26, 2017 18:33:02 GMT -6
deadline.com/2017/10/weinstein-company-fortress-investment-group-money-buyers-circle-1202195615/
Weinstein Company Sees Bidders Massing For Buy; Indemnification Required
EXCLUSIVE: The struggling Weinstein Company has lost Colony Capitol as a financial savior but it looks like Fortress Investment Group is coming to rescue. As a series of potential big buyers like Viacom, Lionsgate and more contemplate circling TWC, the consensus seems to be solidifying that legal protection must be ensured to close a deal and chair Bob Weinstein has to go.
Keeping the bankruptcy wolves at the door, Fortress Investment Group is replacing Colony Capital in putting up a $35 million bridge loan for The Weinstein Company with a deal that’s expected to close by tomorrow. Yesterday, after giving the TWC board around 48 hours to take or leave its slender than expected offer, Colony Capital essentially announced it was closing the three week exclusive window it had to place itself on the inside of a sale of assets for the troubled company.
The depleted board is seeking a check in the $350 million range.
Among the companies who have looked at the books and are considering getting in the mix for a long-term asset purchase with Fortress are Moelis & Co, Viacom, IMG, Anchorage, Yucaipa, MGM, and Lionsgate, insiders say. In a move that may serve as its TWC blueprint, Fortress took over Revolution Studios three years ago. Playing off the Joe Roth co-founded company’ library, the investment group recapitalized Revolution and sold it to Content Partners at the beginning of this year.
However, as TWC faces an investigation by the New York Attorney General and one lawsuit already arising from the dozens of allegations of sexual harassment and sexual assault being leveled against now ex-chair Harvey Weinstein, whatever their plans, potential buyers are insisting on indemnification from legal action before putting money on the table.
Facing a sexual harassment accusations of his own from the showrunner on the now canceled The Mist, any deal will likely insist on seeing Bob Weinstein exit TWC. The working scenario see Weinstein leaving with the Dimension Films label and a payout for his 23% of the company. Yet, denying the sexual harassment claims, the younger Weinstein has publicly insisted he is not going anywhere and neither is the company.
With that potential hindrance, the reality of the ever-growing scandal surrounding Harvey Weinstein and the toxicity of the company mean that the TWC will likely have to bring their $350 million asking price down to fire sale levels in the end. Still, TWC seem confident that whether it is Fortress, Ron Burkle’s Yucaipa or one of the others, the final offer on the table will still end up being more than the lowball offer that the Tom Barrack run Colony Capital put forth.
As for any check cutting for Harvey Weinstein, who was terminated by the TWC board on October 8 and formally resigned on October 17, a decision that is still in flux. With the disgraced Oscar winning producer also owning 23% of TWC, discussions are leaning towards placing Weinstein’s share in a trust with the courts. At this point in the bidding process, the logic of that is to make those funds susceptible to legal claims, current and expected to come.
On paper, there is strength in the assets of the company despite the scandal. While the profitable TV side has taken a bit hit as projects are being scrapped, completed movies are sill potential moneymakers. There are seven movies in the can, including Paddington 2, The War With Grandpa, The Current War, Polaroid, The Intouchables remake Upside, Hotel Mumbai and Mary Magdalene.
In the Heights creators Quiara Alegría Hudes and Lin-Manuel Miranda have asked TWC to give up its movie rights to the Tony-winning musical, but the company still holds the plum property. Additionally, TWC has The Boys in the Boat, the Richard Pryor biopic, and The Six Million Dollar Man, which Mark Wahlberg has been circling.
While some have made noises about walking away with these projects piecemeal, that runs counter to the board’s plans. The attitude is that the TWC board will get the most cash by bundling those assets. However, there is acknowledgement of the impact of the situation created by Harvey Weinstein and the scandal that has seen nearly 60 women come forward. To help offset that, the plan is to put a ringed fence of sorts around the assets. The expectation is that some of the company sale proceeds will be set aside, along with insurance policies that TWC has in place, to offset those costs as they grow
Weinstein Company Sees Bidders Massing For Buy; Indemnification Required
EXCLUSIVE: The struggling Weinstein Company has lost Colony Capitol as a financial savior but it looks like Fortress Investment Group is coming to rescue. As a series of potential big buyers like Viacom, Lionsgate and more contemplate circling TWC, the consensus seems to be solidifying that legal protection must be ensured to close a deal and chair Bob Weinstein has to go.
Keeping the bankruptcy wolves at the door, Fortress Investment Group is replacing Colony Capital in putting up a $35 million bridge loan for The Weinstein Company with a deal that’s expected to close by tomorrow. Yesterday, after giving the TWC board around 48 hours to take or leave its slender than expected offer, Colony Capital essentially announced it was closing the three week exclusive window it had to place itself on the inside of a sale of assets for the troubled company.
The depleted board is seeking a check in the $350 million range.
Among the companies who have looked at the books and are considering getting in the mix for a long-term asset purchase with Fortress are Moelis & Co, Viacom, IMG, Anchorage, Yucaipa, MGM, and Lionsgate, insiders say. In a move that may serve as its TWC blueprint, Fortress took over Revolution Studios three years ago. Playing off the Joe Roth co-founded company’ library, the investment group recapitalized Revolution and sold it to Content Partners at the beginning of this year.
However, as TWC faces an investigation by the New York Attorney General and one lawsuit already arising from the dozens of allegations of sexual harassment and sexual assault being leveled against now ex-chair Harvey Weinstein, whatever their plans, potential buyers are insisting on indemnification from legal action before putting money on the table.
Facing a sexual harassment accusations of his own from the showrunner on the now canceled The Mist, any deal will likely insist on seeing Bob Weinstein exit TWC. The working scenario see Weinstein leaving with the Dimension Films label and a payout for his 23% of the company. Yet, denying the sexual harassment claims, the younger Weinstein has publicly insisted he is not going anywhere and neither is the company.
With that potential hindrance, the reality of the ever-growing scandal surrounding Harvey Weinstein and the toxicity of the company mean that the TWC will likely have to bring their $350 million asking price down to fire sale levels in the end. Still, TWC seem confident that whether it is Fortress, Ron Burkle’s Yucaipa or one of the others, the final offer on the table will still end up being more than the lowball offer that the Tom Barrack run Colony Capital put forth.
As for any check cutting for Harvey Weinstein, who was terminated by the TWC board on October 8 and formally resigned on October 17, a decision that is still in flux. With the disgraced Oscar winning producer also owning 23% of TWC, discussions are leaning towards placing Weinstein’s share in a trust with the courts. At this point in the bidding process, the logic of that is to make those funds susceptible to legal claims, current and expected to come.
On paper, there is strength in the assets of the company despite the scandal. While the profitable TV side has taken a bit hit as projects are being scrapped, completed movies are sill potential moneymakers. There are seven movies in the can, including Paddington 2, The War With Grandpa, The Current War, Polaroid, The Intouchables remake Upside, Hotel Mumbai and Mary Magdalene.
In the Heights creators Quiara Alegría Hudes and Lin-Manuel Miranda have asked TWC to give up its movie rights to the Tony-winning musical, but the company still holds the plum property. Additionally, TWC has The Boys in the Boat, the Richard Pryor biopic, and The Six Million Dollar Man, which Mark Wahlberg has been circling.
While some have made noises about walking away with these projects piecemeal, that runs counter to the board’s plans. The attitude is that the TWC board will get the most cash by bundling those assets. However, there is acknowledgement of the impact of the situation created by Harvey Weinstein and the scandal that has seen nearly 60 women come forward. To help offset that, the plan is to put a ringed fence of sorts around the assets. The expectation is that some of the company sale proceeds will be set aside, along with insurance policies that TWC has in place, to offset those costs as they grow