Weinstein Company set to be bought by Lantern Capital - sources
Private equity firm Lantern Capital is nearing a deal to acquire the Weinstein Company, the TV and film studio that filed for bankruptcy after its co-founder Harvey Weinstein was accused of sexual assault, with a $310 million offer, people familiar with the matter said.
Hollywood trade paper Variety also reported, citing sources, that a second buyer submitted a late bid for the company on Tuesday.
The Weinstein Company filed for bankruptcy in March with the offer from Lantern Capital in hand as a so-called stalking horse bidder.
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It had hoped to get better offers from other suitors, but no higher bid for the entire company emerged by a deadline set in a bankruptcy auction for Monday, the sources said.
It remains likely that Lantern will end up owning the company, but it is not a done deal yet, Variety reported.
There were some offers for parts of the company that were not accepted, one of the sources added.
The sources asked not to be identified ahead of an official announcement. The Weinstein Company declined to comment, while Lantern did not respond to a request for comment.
Hollywood trade publication Deadline Hollywood first reported earlier on Monday that Lantern was the winning bidder for the Weinstein Company.
The deal, which is subject to approval by a U.S. bankruptcy judge, would be the culmination of efforts by the Weinstein Company over several months to find a buyer.
When the allegations against Harvey Weinstein became public in October, the company`s board fired him, and Hollywood heavyweights distanced themselves from the studio.
Combined with lawsuits filed by Harvey Weinstein`s victims, the company was an unappealing acquisition target.
An offer for the studio from a group of investors led by former Obama administration official Maria Contreras-Sweet failed to produce a deal earlier this year, after New York Attorney General Eric Schneiderman filed a civil lawsuit against the company and demanded more compensation for Harvey Weinstein`s victims.
Following Schneiderman`s intervention, Contreras-Sweet`s offer was tweaked to include an $80 million to $90 million compensation fund that would supplement any insurance payouts victims would receive.
Harvey Weinstein, once one of Hollywood`s most influential men, has been accused of sexual misconduct including rape by more than 70 women.
He has denied having non-consensual sex with anyone. It is unclear how much money his alleged victims will receive should the deal with Lantern go through.
Co-founded with Bob Weinstein, Harvey`s brother, the Weinstein Company produced and distributed critically acclaimed hits including "The King`s Speech" and "Silver Linings Playbook," as well as TV`s fashion reality competition "Project Runway."
With its bankruptcy filing, the Weinstein Company said it released anyone "who suffered or witnessed any form of sexual misconduct by Harvey Weinstein" from nondisclosure agreements, contracts that prevented victims from speaking out.
As part of the deal, Lantern will acquire Weinstein`s prized asset, its library of 277 feature films that have generated over $2 billion in aggregate box office receipts worldwide.
Based in Dallas, Texas, Lantern is a buyout firm founded by Andy Mitchell, the former head of Ally Financial`s global special assets group.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)