Harvey Weinstein may have built an empire over the years in Hollywood but his production kingdom crumbled last year with mass allegations against him of sexual harassment. The fatal blow to his reputation also acted the same for his business. Now, as he remains out of limelight, other production houses are already scavenging his empire with the attempt to own it. A close to $500 million deal is being sized up to take over Weinstein Co.
While the deal was stalled for a while, it now seems to be back on the table with Contreras-Sweet meeting New York Atty. Gen. Eric Schneiderman. Their meeting is said to have lasted for three hours in what is being seen as a step towards finalizing the deal. The investor group is being backed by billionaire Ron Burkle.
Contreras-Sweet says that it will reimagine Weinstein Co as a women friendly organization with a special fund established for the victims of abuse who suffered at the hands of the company. The amount of the fund has again become a debatable topic as Schneiderman questioned the viability of the fund. To this they replied that $40 million will be used for the fund after $10 million credit line had been paid off.
The Weinstein Co deal serves a hope for the victims, for otherwise the company will be headed for a state of bankruptcy post which the victim’s stake will come after that of the company creditors. Read More