While Miramax had been struggling for several years (largely due to a lack of hits), last autumn it effectively bit the big one when Disney laid off the staff and announced plans to sell both the name and the mini-major’s back catalogue of movies.
However, with the world economy still in a mess, it’s taken them rather longer to sell it off than they’d hoped (and for less money), but last month it seemed as if things were heading towards their conclusion, with Disney saying a consortium led by the Weinstein Brothers was their preferred bidder. It seemed the perfect conclusion, with the Weinsteins buying back the company they founded and then merging it with their current operation, The Weinstein Company.
However, according to some reports, that deal has now collapsed. The LA Times says that despite several weeks of intense negotiations, the deal between the Weinsteins and Disney has now been scuppered. The problems apparently stemmed from issues over how to integrate Miramax into the Weinstein Company, as well as Disney feeling that one of the backers of the Weinstein’s bid, supermarker mogul Rob Burkle, couldn’t come up with enough cash to keep them satisfied.
However, while the initial report suggested things were all but over, the Weinsteins and Burkle have since hit back, releasing a statement saying, “The Weinstein Brothers, The Weinstein Company and Ron Burkle are all working towards a deal to purchase and operate Miramax. The parties continue to work diligently towards an agreement.” Burkle has also said he has enough cash to fully cover the bid. It seems then that things aren’t over quite yet, but it’s not looking hopeful.