Investor Group Has Deal To Buy Weinstein Co., Start New Movie Studio
Less than a week after the Weinstein Co. seemed destined for bankruptcy, a deal emerged for an investment group to buy assets from the troubled firm in order to launch a new movie studio that will be led by women.
The deal, between the Weinstein Co. and a group backed by billionaire Ron Burkle and led by Maria Contreras-Sweet, who was in charge of the Small Business Administration under President Barack Obama, is said to be worth more than $500 million, according to Reuters.
Contreras-Sweet released a statement that said her group planned to use the Weinstein assets to start a company "led by a board of directors made up of a majority of independent women," which would "save about 150 jobs, protect the small businesses who are owed money and create a victims' compensation fund that would supplement existing insurance coverage for those who have been harmed."
The Weinstein Co. board of directors released a statement announcing the agreement, thanking the investment group, and saying, "We consider this to be a positive outcome under what have been incredibly difficult circumstances.
Rocky negotiations had gone on for weeks between the investment group and the Weinstein Co., which has been in turmoil over accusations against Harvey Weinsteinof sexual misconduct, including rape, by more than 50 women.
On Feb. 26, the Weinstein Co. said it would file for bankruptcy, as NPR's Laurel Wamsley reported, after talks between the two sides broke down over disagreements about interim funding, among other things.