The Weinstein Co., feeling the weight of sexual harassment allegations against co-founder Harvey Weinstein, is in talks to sell part or all of its assets to Colony Capital, the companies announced Monday. The companies said Colony had also agreed to make an immediate cash infusion in the production company. Terms of the infusion were not disclosed.
Colony, controlled by billionaire Thomas Barrack, was part of a group that acquired Weinstein’s former company, Miramax, from Walt Disney Co. in 2010 for $660 million. Colony is the private equity arm of Colony Northstar, which formed last year with the merger of Barrack’s Colony Capital and Northstar Asset Management and Northstar Realty Finance Corp.
“We are pleased to invest in the Weinstein Co. and to help it move forward,” Barrack said in a statement. “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.”
The news comes on the heels of a mounting sexual misconduct scandal that has seen Weinstein accused of rape and sexual harassment by more than 25 women.
The wielding of Weinstein’s power and silencing mechanisms over three decades were documented in a report by The New York Times on Oct. 5. As more women came forward with accusations, Weinstein was fired from the company and, on Saturday, expelled from the Academy of Motion Picture Arts and Sciences. Weinstein has denied the claims.
Barrack was ranked No. 55 on the Business Journal’s list of Wealthiest Angelenos in May with an estimated net worth of $1.13 billion. A longtime friend of President Donald Trump, Barrack chaired and raised $107 million for Trump’s inauguration committee.
Manufacturing and trade reporter Shwanika Narayan can be reached at email@example.com or 323-556-8351. Follow her on Twitter @shwanika.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Wealthiest Angelenos: 55. THOMAS BARRACK
- REIT Colony Capital Announces NorthStar Merger
- LA 500: Thomas Barrack Jr.
- Thomas Barrack Jr.
- Guess’ Paul Marciano Gives up Day-to-Day Duties Amid Sexual Harassment Claims
- The 50 Wealthiest Angelenos: 35. Thomas Barrack
- Newly Merged Firm Springs Into Large Venture
- The Money Book: Thomas Barrack Jr.