Private Equity Firm Buys the Remains of Weinstein Co. for $310 Million
A winning bidder has emerged in the embattled Weinstein Company’s bankruptcy sale.
The movie studio filed for bankruptcy in the wake of sexual harassment claims against co-founder Harvey Weinstein, and its assets went up for sale. After no serious bidders emerged, Lantern Capital Partners will buy the remains of the company for $310 million plus the assumption of about $115 million in debt.
The company’s assets include the rights to some of its award-winning films it produced and distributed as well as some of the rights deals to films that are still in production, according to CNNMoney.
The production studio had received an offer in March from an investor group led by Maria Contreras-Sweet for $500 million, but the deal fell through after raising questions about the company’s financials.
Although there was supposed to be an auction in effort to find the highest bidder, Lantern Capital Partners turned out to be the only qualified bidder to have met the initial price set by the court. Lantern Capital Partners is a private equity company specializing in middle-market and buyouts investments in the automotive industry. Though it has no experience in the entertainment business, the firm said it “remains committed to providing premier content with a diverse workforce in a safe environment founded on a culture of respect and creativity.”
As Fortune has reported previously, Weinstein Co.’s bankruptcy and sale to Lantern nullified all the non-disclosure agreements that Weinstein made his accusers sign when he settled with them. In other words, this opens up the possibility that more of his victims could come forward.
“No one should be afraid to speak out or coerced to stay quiet,” according to a statement. “The Company thanks the courageous individuals who have already come forward. Your voices have inspired a movement for change across the country and around the world.”
The sale is pending approval by a Delaware bankruptcy court, slated for next week.