Weinstein Company In Talks For Potential Sale

(RTTNews) - Weinstein Co. said it has entered into a preliminary agreement for immediate capital infusion from Colony Capital, the global private equity arm of Colony NorthStar, Inc. (CLNS).

In addition, Weinstein Co. has entered into a negotiating period with Colony Capital for a potential sale of all or a significant portion of its assets. Further details of the deal were not disclosed.

Tarak Ben Ammar, Weinstein board member, stated, "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."

Thomas Barrack, Jr., founder and executive chairman of Colony Capital said, "We will help return the Company to its rightful iconic position in the independent film and television industry."

The deal for capital infusion from Colony Capital comes after Weinstein Co. recently fired its co-founder and Hollywood film tycoon Harvey Weinstein, who is mired in a sex scandal as multiple allegations of sexual misconduct surface against him.

Several women have accused Weinstein of raping them, while sexual misconduct allegations emerged from Hollywood A-listers such as Angelina Jolie, Rosanna Arquette and Gwyneth Paltrow.

Founded in 1991 by Thomas Barrack Jr., Colony NorthStar is an investment firm with $56 billion in assets under management. Since its founding, Colony has invested over $100 billion in capital.

In 2010, Colony NorthStar acquired entertainment company Miramax from Walt Disney Co. (DIS).

Miramax was founded in 1979 by brothers Bob and Harvey Weinstein, and was a leading independent film motion picture distribution and production company before it was acquired by Disney in 1993. The Weinsteins operated Miramax until September 2005, when they left the company and founded the Weinstein Co.

Miramax was later sold by Disney to Filmyard Holdings, a joint venture of Colony NorthStar, Tutor-Saliba Corp. and Qatar Investment Authority in 2010, ending Disney's 17-year ownership of the studio. In 2016, ownership of Miramax was transferred to Qatar-based broadcaster BeIN Media Group.