Weinstein Co. to be sold for less than $500 million

By Crayton Harrison

Weinstein Co., the embattled studio co-founded by disgraced producer Harvey Weinstein, is close to a sale for less than $500 million, the Wall Street Journal reported, citing unidentified people familiar with the matter.

Because of legal bills and operating expenses, owners would receive no cash from a deal, which would include the assumption of roughly $250 million in debt, the newspaper said. The board has selected six potential buyers, including studio Lions Gate Entertainment Corp., a group led by former Small Business Administration chief Maria Contreras-Sweet, production company Killer Content and investment firms Vine Alternative Investments and Shamrock Capital Investments, the Journal said.

Weinstein Co. has been in survival mode after ousting its co-founder last year over allegations by several women that he harassed or assaulted them. A $35 million loan from Fortress Investment Group fell through, and a financing arrangement with Colony Capital evaporated, forcing the company to buy time in November by selling the rights to children’s film 'Paddington 2' to Warner Bros. for $32 million. Harvey Weinstein has denied engaging in non-consensual sex.

Weinstein Co. didn’t reply to requests for comment. The company, producer of television shows such as 'Project Runway' and movies like Oscar winner 'The King’s Speech', was hobbled by debt and potential liabilities from the actions of its co-founder, Colony Capital founder Tom Barrack said in October on Bloomberg TV.

“If the Weinstein element could be removed, if the toxicity of the liabilities that surround it could be addressed, and if the content of the company could continue on in a normal way, there’s some value,” Barrack said at the time.