The Weinstein Company’s lifeline from Colony Capital seems to have cut off after it was announced earlier this week that Thomas J. Barrack Jr’s private equity firm reached a preliminary agreement with the studio for “an immediate capital infusion.” The news comes shortly after Barrack’s appearance on Bloomberg TV earlier this morning when he said a decision would be made “soon” about TWC.
It was announced today that the agreement has fallen apart. According to the New York Times, Colony has not and will not provide the aforementioned cash infusion to the studio that has been under fire — and in need of cash — in the wake of sexual harassment and assault allegations connected to co-founder Harvey Weinstein. Two anonymous sources gave the NYT the news, but it has not been revealed why the deal had fallen apart.
TWC board member Tarak Ben Ammar spoke about the preliminary deal earlier this week saying, “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.”
Colony was in negotiations to buy part or all of TWC and its assets. However, after close inspection, Colony found that the assets were of less value and in disorder. Colony said that bankruptcy was the most likely outcome for TWC, according to NYT.
TWC has many TV shows currently in development as well as many films in its portfolio — many of which have been affected by Weinstein’s scandal. Most recently, Taylor Sheridan’s Wind River has cut ties with TWC and David Heyman, producer of Paddington 2 has said that “The Weinstein Company name is nowhere near” the family smash hit. The Oscar-hopeful The Current War starring Benedict Cumberbatch has also removed the disgraced exec’s name from its credits and has shifted release dates as a result of the scandal.