After months of negotiations with various bidders, Walt Disney Company finally agreed to sell Miramax Films to Filmyard Holdings LLC for more than $660 million.
According to several online published reports, the media mogul finally reached a deal with an investor group led by Ron Tutor, chairman of Sylmar construction giant Tutor Perini Corp.
Besides the Los Angeles-based private-equity firm Colony Capital, the deal also includes minority investor Jerome Swartz, a retired engineer and philanthropist, and other individuals. Another minority investor Morgan Creek Productions founder James Robinson’s involvement in the acquisition is not yet known.
Disney sells Miramax
According to Los Angeles Times, in a statement Thursday Disney announced the sale of Miramax Films to Filmyard Holdings LLC for over $660 million.
Under the deal, Filmyard will obtain rights in the Miramax’s library of 700 film titles, which includes the Oscar winners “Shakespeare in Love” and “Pulp Fiction,” as well as book titles and development projects, the Burbank, California-based media mogul said.
Operations at Miramax, the studio behind the big commercial hits such as "Pulp Fiction" and "Chicago," were ceased by Disney this year, which was followed by closing of the studio’s offices in New York and Los Angeles and the termination of its 80 employees.
A report by The Hollywood Reporter says that in addition to the $650 million, Disney is requesting a $25 million closing fee, making the total acquisition cost $675 million, which is close to the price Disney was seeking for the art-house moviemaker since last October.
Disney happy to sell Miramax
“Although we are very proud of Miramax's many accomplishments, our current strategy for Walt Disney Studios is to focus on the development of great motion pictures under the Disney, Pixar and Marvel brands," MarketWatch quoted Disney Chief Executive Robert Iger as saying. "We are delighted that we have found a home for the Miramax brand and Miramax's very highly regarded motion picture library."
"I am delighted and honored to acquire the Miramax library," said Ron Tutor, according to MarketWatch. "On behalf of my partners Tom Barrack and Colony Capital, we look forward to sharing this high quality content with the world in every form of media for many years to come."
Reportedly, construction executive Tutor is seeking a seasoned movie executive to run Miramax, founded by brothers Harvey and Bob Weinstein, and recruit a staff of as many as 50 employees.
A report by The Hollywood Reporter says that, in addition to the $650 million, Disney is requesting a $25 million closing fee, making the total acquisition cost $675 million, which is close to the price Disney was seeking for the art-house moviemaker since last October.
The transaction is subject to certain regulatory approvals and is expected to close between Sept. 10, 2010 and the end of the calendar year, Disney said.