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Investor Group To Buy Weinstein Co. And Start New Movie Studio

Mar 2, 2018
Originally published on March 2, 2018 8:39 am
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The sale of The Weinstein Company is now back on. Last week, the company said it would file for bankruptcy instead, but now it's going forward with a deal that includes money for victims of Harvey Weinstein's alleged sexual abuse. Here's NPR's Andrew Limbong.

ANDREW LIMBONG, BYLINE: Late yesterday, a group of investors, then the Weinstein Company, and finally New York Attorney General Eric Schneiderman released statements confirming that they reached an agreement over the sale of The Weinstein Company. Assuming there are no more twists in this sale, the move would save about 150 jobs and create a fund for, quote, "those who have been harmed." A source familiar with the deal says the fund will be between $80 and $90 million dollars.

The buyers' group is led by Maria Contreras-Sweet. She used to run the Small Business Administration under President Obama. Also part of the group she leads is billionaire investor Ron Burkle. They're planning on launching a new company led by a board of directors made up of a majority of women.

The company has been up for sale since last year after dozens of women accused movie mogul Harvey Weinstein of sexual harassment, assault and rape. The sale was reportedly set for $500 million last month. Then, the New York attorney general filed a civil rights lawsuit against Harvey, his brother Bob Weinstein and the company. Here's Schneiderman then.

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ERIC SCHNEIDERMAN: They knew how pervasive it was. And not only did they fail to stop it, they enabled it and covered it up.

LIMBONG: Just last Sunday, The Weinstein Company said the deal was off because the investors apparently wouldn't put up interim funding for the business. The only option was bankruptcy, the company said. That would have put any money for victims in jeopardy.

The Weinstein Company said in its statement last night, quote, "we consider this to be a positive outcome under what have been incredibly difficult circumstances." The attorney general's office says the lawsuit remains ongoing. It's worth mentioning that Harvey Weinstein is still also facing a number of criminal investigations. Andrew Limbong, NPR News.

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