Hefty pricetag scares off other bidders
And then there were two.
Bob and Harvey Weinstein and billionaire brothers Alec and Tom Gores are in the running to purchase Miramax Films from Disney should the price fit what the Mouse House is looking for.
The studio had set March 31 as the deadline to accept offers for the specialty label and its 700-film library, then bumped it to April 1, before delaying it to today in order to provide bidders with additional details on the company and allow final documents to be prepared.
Disney hoped the moves would help boost the final offers to align more with the $650 million to $700 million it’s said to be seeking. Disney has declined to discuss the sale throughout the bidding process.
But insiders say the price tag is too high, given the types of films Miramax has in its library — including “Shakespeare in Love,” “Chicago,” “Pulp Fiction,” “No Country for Old Men,” “The Queen” and “Good Will Hunting” — how much they earn and have already been exploited across various distribution platforms and their potential to be rebooted for the megaplex.
Instead, offers are expected to come in at around $400 million to $500 million.
Disney’s price tag and value of the films prompted several interested bidders like Summit Entertainment, Lionsgate Entertainment, Amir Malin and Ken Shapiro’s investment fund Qualia Capital, and Daniel Snyder, owner of RedZone Capital and the Washington Redskins football team, to walk away from the auction.
Miramax is especially attractive to the Weinstein brothers, given that they founded the company and its name is derived from their parents, Miriam and Max. The two, who don’t have the hundreds of millions needed to buy back the company, are seeking to pair with outside financial partners to make their offer. One is said to be supermarket magnate Ron Burkle and his Yucaipa Cos.
The brothers founded the company in 1979 and sold it to Disney for $80 million in 1993. They left Miramax in 2005 to start the Weinstein Co.
Paradigm-topper Sam Gores is repping his brothers Alec Gores, who runs the Gores Group, and Tom Gores’ private equity firm Platinum Equity, in the bidding process. The two want to continue running Miramax as an indie label, should they acquire the company.