Despite previous reports indicating that Jay-Z was interested in buying Harvey Weinstein’s shares in the Weinstein Company, the once-proud Hollywood institution has run afoul of just about everyone following its namesake’s multiple scandals. In October, it was reportedly bailed out by a close friend of President Trump, but since then the company’s interests have all but dried up. Subsequent stories indicated the remaining owners, executives, and shareholders were looking to sell off what was left of the company, but they offered nothing of note until the Wall Street Journal‘s latest article indicating that a sale was imminent.
According to the WSJ, sources familiar with the process indicated the Weinstein Company “could go for less than $500 million and its shareholders may lose all of their equity.” Around 20 offers came in before the company’s December 22nd deadline, and these have since been “narrowed down” to a list of six potential buyers:
The bidders include a group led by businesswoman Maria Contreras-Sweet; production company Killer Content working with philanthropist Abigail Disney; studio Lions Gate Entertainment Corp.; and investment firms Vine Alternative Investments and Shamrock Capital Investments.
The bids have topped out close to $500 million, roughly half of which would be the assumption of debt, the people said.
Due to the many sexual assault scandals involving Harvey Weinstein and, in one case, his brother Bob, the company is still facing significant “operating expenses and legal bills.” (The group was specifically named in a $5 million lawsuit against Harvey back in October.) As a result, the offers received by the owners and board of directers were rather miniscule.
(Via Wall Street Journal)