Weinstein Company suffers yet another setback as Colony Capital pulls out of funding deal

AFP

Oct,26 2017 13:42:56 IST

The scandal-plagued film studio co-founded by disgraced mogul Harvey Weinstein will no longer get funding from Colony Capital, The New York Times reported on 25 October.

The Weinstein Company announced last week that Colony, founded by Thomas Barrack, a longtime friend of US President Donald Trump, would provide an "immediate cash infusion."

It said it had also entered negotiations with Colony Capital for a full or partial sale of The Weinstein Company assets.

Citing two people briefed on the matter, The Times said Colony has not and will not now provide a cash infusion, although it was unclear why.

Colony is still looking at a possible purchase of Weinstein Company assets, but found more disorder and less value when it examined those assets, The Times' sources said.

Colony Capital founder Thomas Barrack (left); disgraced film mogul Harvey Weinstein (right). Images via Facebook

Colony Capital founder Thomas Barrack (left); disgraced film mogul Harvey Weinstein (right). Images via Facebook

They added that Colony saw bankruptcy of the studio as more likely.

The Weinstein Company fired Harvey Weinstein earlier this month following numerous accusations of sexual harassment and sexual assault.

On 25 October, a Norwegian actress became the latest of more than 50 women to publicly accuse Weinstein of misconduct ranging from inappropriate touching to rape, stretching back decades.

Since the allegations emerged, questions have swirled around whether the studio, started by Harvey and his brother Bob, could survive Harvey Weinstein's disgraced exit.

US media reported on 23 October that New York's state attorney general has opened a sweeping investigation into potential gender discrimination and civil rights violations at The Weinstein Company.

Barrack told Bloomberg TV on 24 October that "there's some value" to the company "if the Weinstein element could be removed."

The Times, citing three people briefed on the matter, reported on 25 October that another firm, Fortress Investment Group, has been working on a potential financing package for the studio valued at roughly $35 million.

Weinstein's films received more than 300 Oscar nominations and 81 statuettes, according to The Weinstein Company, which he co-founded after selling Miramax.

Updated Date: Oct 26, 2017 13:42 PM