Following the fire storm of allegations and accusations against co-founder Harvey Weinstein, it looks like The Weinstein Company film studio is on the verge of being sold for less than $500 million, according to a report by the Wall Street Journal.
The report would go on to further discuss that the apparent sale would leave owners of the studio to receive essentially no cash from the deal due to legal bills and operating expenses. This is based on the assumption that the studio is currently in around $250 million of debt. There are reportedly six potential buyers in line to purchase the tainted studio: Lions Gate Entertainment Corp., a group led by former Small Business Administration chief Maria Contreras-Sweet, production company Killer Content, Vine Alternative Investments, and Shamrock Capital Investments.
The Weinstein Company’s struggles have been clear ever since the bombshell allegations of various acts of sexual misconduct including rape, sexual assault, and sex trafficking were brought against Harvey Weinstein last year, which would lead to his eventual firing from the company in Oct. 2017. These allegations would lead numerous other victims to come forward with their encounters, sparking the #MeToo movement on social media, and rocking Hollywood to its very core. Most recently, it was announced that two of the cases against Weinstein have been sent to the L.A. District Attorney’s office for review, meaning proper justice can hopefully be served sooner than later.
Of course, less than $500 million seems like a low selling price for an entire film studio, but the reasoning behind the value is obvious.
source: complex.com BYMIKE DESTEFANO