Investor group led by former Obama official buys Weinstein Co.

Weinstein Company
An investor group will purchase the embattled Weinstein Company for $500 million. (Image: Weinstein Company)

The Weinstein Company has found a deal to sell its assets to an investor group led by former Obama administration official Maria Contreras-Sweet, who served as the head of the Small Business Administration.

According to the Washington Post, the group also includes billionaire Ron Burkle. Weinstein Company said the deal provides a “clear path for compensation for victims and protects the jobs of our employees.”

The price for the deal is reportedly set at $500 million, which includes a $225 million assumption of debt.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceVideo!

The Video industry is an ever-changing world where big ideas come along daily. Cable, Media and Entertainment, Telco, and Tech companies rely on FierceVideo for the latest news, trends, and analysis on video creation and distribution, OTT delivery technologies, content licensing, and advertising strategies. Sign up today to get news and updates delivered to your inbox and read on the go.

Last month, Variety said that the deal talks had been revived after Burkle and Contreras-Sweet met with New York State Attorney General Eric Schneiderman. That meeting occurred after Schneiderman’s office filed a discrimination suit against Weinstein Co.

RELATED: Weinstein Company lands investment with option to buy from Colony

Last year, Weinstein Co. managed to secure an investment with an option to buy from Colony Capital.

“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.

But Colony eventually withdrew the offer.

The sale of Weinstein Co. comes after months of dealing with the backlash from allegations of sexual misconduct and rape by Harvey Weinstein, who was fired from the company in 2017.

Suggested Articles

Amobee is launching a data marketplace for connected TV advertising to provide brands and agencies with access to data for activation across connected TV and…

When Charter and Disney earlier this week announced their new carriage agreement, they included news about cooperatively working against video piracy, which…

Cord cutters who opt for streaming video services instead of traditional pay TV will inevitably increase their broadband consumption. But some new research…