The long road to the sale of Miramax appears to finally be over. Disney has reached an agreement in principle to sell the name and 600+ title library (which still includes five unreleased films) to construction magnate Ron Tutor, investment firm Colony Capital and a number of smaller, minor investors.
The deal is not yet final as Tutor and co., who have committed approximately $300 million in equity, still need to raise about $200 million more and also, they now will be doing due diligence on Miramax’s books for the rest of the month so things may change. However, in what must be rich irony for Harvey and Bob Weinstein who had their $575 million offer turned down earlier this year, the valuation of the company without their involvement is being questioned by potential banks and financiers.
But what about David Bergstein, the embattled producer/CEO/gambler of the now bankrupt Capitol Films? He has long been linked and rumored to the talks involving his good friend and neighbor Tutor, but outside of acting as a consultant on the deal, “he will not be part of the just-concluded deal and will not have any operational or executive role in the new company which the buyers plan to form after the deal closes.” Thank God for that.
The Weinsteins have made no comment on the deal yet but are expected to bid again should the Tutor deal fall apart. Also, they still retain remake and consultation rights on several lucrative franchise including “Halloween,” “Children of the Corn” and “Scream” (“Scream 4” is in production right now).
The Miramax catalog, from a film lover’s perspective, contains a number of celebrated, award winning, groundbreaking films, and we are definitely wary of the library being controlled by people with no experience in the industry. Whatever you may think of the Weinsteins and their methods, it’s undeniable that they can be the greatest champions of their films and as having lived and breathed the company and made it what it is, it seems a no-brainer that they would be best suited to take things over.
But that’s the rose glasses version of things. For Disney, it’s a business deal first and foremost, and for Tutor and co., it’s something to add to their portfolio. Another day in Hollywood; we just hope it works out of for the best.
