The Weinstein Company has entered a “preliminary agreement” with Colony Capital that will “provide an immediate capital infusion into the Company,” TWC announced Monday.
Additionally, TWC is negotiating a potential sale of all or a portion of the company’s assets to Thomas Barrack Jr.’s firm.
The amount of the capital investment and terms of any potential sale of assets were not disclosed.
The 12-year-old NYC-based indie film and TV studio has been under siege since the firing last week of co-founder Harvey Weinstein in the wake of disclosures of multiple allegations of sexual misconduct.
Over the weekend, the company postponed the release of its presumed awards contender, the Benedict Cumberbatch period drama “The Current War,” to an unspecified date in 2018.
In addition, Amazon dropped plans to develop a new crime thriller series with TWC’s TV division that would have starred Robert De Niro and Julianne Moore.
Colony Capital is the global private equity arm of Colony NorthStar, which is an international investment firm with $56 billion in assets. It was founded in 1991 and has since then invested over $100 billion in capital.
Colony worked extensively with TWC through the joint venture between TWC and Miramax in 2013.
“On behalf of the board, we are pleased to announce this agreement and potential strategic partnership with Colony Capital,” TWC board member Tarak Ben Ammar said in a statement. “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.”
Barrack, founder and Executive Chairman of Colony Capital, added, “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.”
Weinstein Company co-founder Harvey Weinstein was fired from The Weinstein Company and is under criminal investigation in New York and London after several women came forward to accuse him of sexual misconduct, including harassment and rape.
A representative for Weinstein has stated, “Any allegations of non-consensual sex are unequivocally denied by Mr. Weinstein. Mr. Weinstein has further confirmed that there were never any acts of retaliation against any women for refusing his advances.”