hollywood 411
Deal to purchase Weinstein Co. collapses
A group of investors, led by former Obama administration official Maria Contreras-Sweet, announced Tuesday they are backing out of a deal to buy The Weinstein Co., after receiving "disappointing information about the viability of completing this transaction."
A person with knowledge of the matter told Reuters the deal was called off after the investors found out the company's debt was $280 million, not $225 million as previously disclosed. Dozens of women have accused co-founder Harvey Weinstein of sexual misconduct, and the suits pushed the company close to bankruptcy. Last week, it was announced the investors had reached an agreement to buy The Weinstein Co.'s assets and launch a new studio that would have a majority-female board and set up a fund for women who say they were abused by Weinstein.
The deal was reportedly worth $500 million, and would have secured the jobs of about 130 employees.