Amid the fallout surrounding numerous accusations of sexual harassment and rape against Harvey Weinstein, the company he cofounded is attempting to move forward with a new investment.
Colony Capital announced a preliminary agreement to immediately invest in Weinstein Company, as well as the start of a negotiating period regarding the purchase of all or a “significant portion” of the Weinstein Company assets.
“We believe that Colony's investment and sponsorship will help stabilize the Company's current operations, as well as provide comfort to our critical distribution, production and talent partners around the world. Colony's successful experience and track record in media and entertainment will be invaluable to the Company as we move forward,” said TWC board member Tarak Ben Ammar in a statement.
“We are pleased to invest in The Weinstein Company and to help it move forward. We believe the Company has substantial value and growth potential, and we look forward to working with the Company's critical strategic distribution and production partners to help preserve and create value for all stakeholders, including its employees. We will help return the Company to its rightful iconic position in the independent film and television industry,” said Thomas Barrack, Jr., founder and executive chairman of Colony Capital, in a statement.
Colony’s ties with the Weinstein Company go back several years. In 2010, Colony acquired Miramax, a film and television studio cofounded by Harvey Weinstein, and has run it as joint venture with the Weinstein Company since 2013.
The emergency deal with Colony comes as TWC continues to deal with the backlash from mounting allegations of sexual misconduct and rape against Harvey Weinstein, who was fired from his company last week.