LOS ANGELES — The embattled Weinstein Company on Monday secured a financial lifeline — and possible new owner — from an investor with experience in distressed Hollywood assets.
But the fate of the studio, including whether its co-founder Bob Weinstein would stay involved, remained far from resolved.Tarak Ben Ammar, one of three remaining Weinstein Company board members, said in a statement on Monday that the studio, reeling from sexual harassment allegations made against the company’s other co-founder, Harvey Weinstein, had reached a preliminary agreement with Colony Capital for an “immediate” cash infusion. The amount was undisclosed.
Mr. Ammar also said that Colony, which rescued Michael Jackson’s Neverland Ranch from foreclosure in 2008, had entered negotiations to buy all or most of the Weinstein Company’s movie and television holdings. Thomas J. Barrack Jr., founder of Colony Capital, said in a statement that he believed the sullied studio “has substantial value and growth potential.” A deal is expected to take three weeks or more to complete.
Not mentioned by the Weinstein Company on Monday: Bob Weinstein, who insisted on Friday that speculation about a sale was “untrue.” Harvey Weinstein was fired by the company last week.
Bob Weinstein is fighting to remain at the studio, but some stakeholders believe he must leave, according to two people with knowledge of the matter, who spoke on the condition of anonymity to discuss private conversations.
Bob Weinstein, who told The Hollywood Reporter on Saturday that he did not know “the extent” of his brother’s actions, did not respond to a request for comment.In turning to Colony, the Weinstein Company and its advisers at the investment bank Moelis & Company are reaching out to a firm with experience in Hollywood. But some longtime media investors, noting the seriousness of the allegations against Harvey Weinstein, questioned what could be done with such a toxic asset.
“I don’t think you can sell this company with all the litigation you’re looking at,” said Amir Malin, the founder of Qualia Capital, a media investment firm. Mr. Malin was referring to both pre-existing commercial lawsuits and the vast number of potential lawsuits related to Harvey Weinstein’s sexual behavior.
Work has been underway in Hollywood to end partnerships with the studio. Amazon pulled the plug late Friday on a major television deal. At the same time, agents say they have been pressing the Weinstein Company to sell finished or near finished films like “The Upside,” a comedy starring Kevin Hart and Nicole Kidman, and “Mary Magdalene” starring Rooney Mara; many of the stars involved with those projects want nothing to do with the Weinsteins.
The Weinstein Company, already struggling in recent years because of box office misfires, has been imploding since investigations by The New York Times and The New Yorker revealed sexual harassment and rape allegations against Harvey Weinstein…
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