Weinstein Co. seeks cash, announces it may be sold
LOS ANGELES — The Weinstein Co., beset by sexual harassment and rape allegations against ousted co-founder Harvey Weinstein, announced Monday that it is in negotiations to sell part or all of itself to Colony Capital.
The company — known for producing films such as “Silver Linings Playbook,” “Django Unchained” and “The Iron Lady,” as well as the reality television series “Project Runway” — also said it has a preliminary agreement for Colony Capital to give it an immediate cash infusion.
“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,” Weinstein Co. board member Tarak Ben Ammar said Monday in a statement. “Colony’s successful experience and track record in media and entertainment will be invaluable to the company.” Colony Capital is the global private equity arm of real estate and investment management firm Colony NorthStar.
The negotiations with Colony Capital come less than two weeks after The New York Times published an investigation detailing decades of alleged sexual harassment by Harvey Weinstein.
Five days after that report, The New Yorker published its own investigation, in which three women accused him of rape. Numerous other women also came forward with allegations.
The producer has apologized for some of his behavior but denied the rape claims.
Backlash against him has been swift. On Oct. 8, Weinstein Co. fired him.
Colony Capital is no stranger to Hollywood. In 2010, a group of investors led by Colony Capital and construction magnate Ronald Tutor acquired film and TV firm Miramax — which was founded by Harvey Weinstein and his brother, Bob Weinstein — from Walt Disney Co. The Weinsteins had left Miramax in 2005.
Bob Weinstein, Weinstein Co.’s lone remaining chairman, said Friday that the company was not shutting down or for sale, but his statement was immediately contradicted by a high-level person within the studio who was not authorized to comment.