The Weinstein Company is finalising a sale with the price reportedly set at less than $500 million according to The Wall Street Journal. Should it sell around that price, roughly half of the assumption of debt, its shareholders would lose all of their equity.
The company was founded in 2005 and was once an indie movie powerhouse. In October last year though, after multiple sexual assault allegations against co-founder Harvey Weinstein came to light, the company went into a spiral it hasn’t been able to recover from.
There are multiple bidders including groups led by businesswoman Maria Contreras-Sweet and philanthropist Abigail Disney, at least two investment firms, and former Miramax rival LionsGate. The bidders aren’t interested in the company so much as its assets including its television production company and library of independent films.
Due to the operating expenses and legal bills, the studio’s current owners would not receive any cash from the sale at a $500 million price tag.