On Sunday, the Weinstein Co. announced that it will file for bankruptcy protection after the collapse of a $500 million deal to sell the company to investors led by Ron Burkle and Maria Contreras-Sweet. The Weinstein Co. board said it was officially calling off talks because it concluded from the bidding group's inadequate offer of emergency interim financing that its "plan to buy this company was illusory and would only leave this company hobbling toward its demise to the detriment of all constituents."
The sale looked close to completion two weeks ago, but then New York Attorney General Eric Schneiderman filed a civil lawsuit accusing the company of complicity in cofounder Harvey Weinstein's apparently rampant sexual misconduct. The bidders and Weinstein board met with Schneiderman last week, and the sale looked to be back on track, Variety reports, but "it appears that the added stress on the transaction exposed conflicts between the two sides."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Not invincible: Tech burned by tariff warFeature Tariffs on Asian countries are shaking up Silicon Valley, driving up prices and deepening global tensions
-
Fake AI job seekers are flooding U.S. companiesIn the Spotlight It's getting harder for hiring managers to screen out bogus AI-generated applicants
-
The full moon calendar for every month.In depth When to see the lunar phenomenon every month
-
Markets notch worst quarter in years as new tariffs loomSpeed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panelsSpeed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of businessSpeed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pausesSpeed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocksSpeed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor dealSpeed Read The strike could have shut down major ports from Texas to Maine
-
Biden expected to block Japanese bid for US SteelSpeed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
-
Judges block $25B Kroger-Albertsons mergerSpeed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
