The downfall of Harvey Weinstein also has triggered the downfall of his company, The Weinstein Company. He co-founded the company along with his brother, Bob Weinstein in 2005.
Harvey Weinstein was fired from the company last week by the board of directors of the company. Bob Weinstein’s position in the company doesn’t seem to be secured either. But in between of these, the Weinstein company has found what one can call “A financial lifeline” or maybe a future owner of the company. The Weinstein Company finally saw a ray of hope after almost 10 days since The New York Times article came out and accused Harvey Weinstein of sexual harassment and assault. The Weinstein Company announced that colony capital will be coming to the rescue.
Colony capital and TWC have reached to a point where there is deal almost ready to be signed which will help TWC to get an “immediate capital infusion”. The colony is planning to negotiate with TWC for buying it’s part or maybe buying the company entirely.
The half of the board of the Weinstein company left since the allegations against the owner started coming up. The rest four who stayed in the company made a statement with Tarak Been Ammar speaking in the front. “We are pleased to announce this agreement and potential strategic partnership with Colony Capital,” he said. “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.”
The founder and executive chairman of the colony capital, Thomas J. Barrack, Jr., said 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.”
Bob Weinstein recently said in an interview that The Weinstein Company won’t be sold to anyone and he will try his best to get back the company on track. But now that doesn’t seem to happen now with Colony Capital trying to offer a deal which the board of directors at The Weinstein Company can’t afford to lose out. The Weinstein Company is going down like a ship anyway, it’s better to make the deal with Colony Capital so there is a slight chance of recovery.