Say it isn't so: Weinsteins' deal to reclaim Miramax falls apart
So much for the happy ending. After weeks of speculation that it was a done deal, negotiations have broken down between the Weinsteins and the Walt Disney Company for the brothers to reclaim the Miramax brand and film catalog.
According to the Los Angeles Times, the deal broke up over two issues. First, how the company would be integrated into the Weinsteins' current outfit, The Weinstein Company, and second, the inability of partner Ron Burkle to raise the $625 million the partners had bid. The paper reports Burkle was putting in $300 million of his own, but looking for outside financiers to come up with the remaining $325 million. That has not worked out.
Sadly, the Weinsteins planned to formally announce their reunion with Miramax, the company they founded in 1979 and named after their parents, sometime over the past week at the Cannes Film Festival. As the days passed, the announcement from the south of France never came.
Disney is now expected to approach one of the other final bidders (and a set of brothers), Alec and Tom Gores. It's unclear how low the price will go considering Disney was originally hoping for $700 million.
The Miramax library features Oscar winning films such as "Shakespeare in Love," "No Country For Old Men" and critically acclaimed hits including "Kill Bill," "Good Will Hunting," "Scream" and "Pulp Fiction."
However, it's worth noting that Harvey and Bob Weinstein are legendary for continuing to resurrect themselves and their businesses. Is it possible they can still find a way to reclaim their beloved Miramax brand? Stay tuned...