×

Weinstein Co. Closes $289 Million Sale to Lantern Capital

A Texas private equity firm has closed its $289 million acquisition of the Weinstein Co., and will seek to revive the studio that was driven into bankruptcy by Harvey Weinstein’s sex assault scandal.

Lantern Capital won approval last week for the transaction from a Delaware bankruptcy judge. The company will relaunch as Lantern Entertainment, with offices in Dallas, Los Angeles and New York. Andy Mitchell and Milos Brajovic, the co-presidents of the company, issued a statement Monday announcing the sale.

“Over the last several months, we have immersed ourselves in the formation of Lantern Entertainment,” Mitchell and Brajovic said. “Throughout all our conversations with employees, creatives and industry professionals, we are inspired by the collective commitment and support extended to the launch of our new company, which is anchored by creativity in a meritocracy-based culture. Across all disciplines, we are extremely motivated to become a forward-thinking force in this industry.”

The equity holders, including Bob and Harvey Weinstein, will not recoup anything in the sale. The proceeds will largely go to pay off lawyers and bankruptcy professionals, and the Weinstein Co.’s secured creditors, including Union Bank. Anything that may be left over will be divided among the unsecured creditors, including alleged victims of Harvey Weinstein’s sexual misconduct.

The company will take control of the Weinstein’s 277-film library, as well as TV shows including “Project Runway.” The company also holds at least two unreleased films, including “The Upside” starring Kevin Hart and “The Current War” starring Benedict Cumberbatch. The new owners have yet to lay out their vision for the company. Last week, the company laid off 26 employees in marketing, distribution and public relations — more than a third of the remaining workforce.

Also unclear is whether the company will be able to exploit the films in its library without assuming the talent contracts that go with them, and paying off any unpaid residuals. That issue nearly scuttled the sale, as Lantern and the Weinstein Co. each argued that the other should be responsible for paying to cure those contracts. The issue will be addressed in a series of bankruptcy court hearings still to come.

Four members of the Weinstein Co. board, including Chairman Bob Weinstein, stepped down upon the closing of the transaction.

More Biz

  • Alan Horn Bill Tanner

    Alan Horn to Keynote Variety Business Managers Elite Breakfast, Bill Tanner to Be Honored

    Bill Tanner will be recognized with Variety’s 2019 Business Managers Elite Award at the annual Business Managers Elite Breakfast presented by City National Bank, which takes place in Beverly Hills on Nov. 13. Co-chairman and chief creative officer of The Walt Disney Studios Alan Horn will be the keynote speaker in conversation with Variety editor-in-chief, [...]

  • Smoke haze covers the Sydney Harbour

    Australia's Seven West to Merge With Affiliate Prime Media

    Australia’s Seven West Media has agreed a deal to acquire regional broadcast group Prime Media. The move is a further step in the consolidation of Australia’s traditional media industry. The two companies announced on Friday that Seven will make the acquisition entirely through the issue of new shares to the owners of Prime. Both companies [...]

  • Ron Meyer

    Ron Meyer Files $10 Million Suit Over Forged Rothko

    NBCUniversal Vice Chairman Ron Meyer has filed a $10 million suit against two art dealers, claiming they sold him a forged Mark Rothko painting in 2001. Meyer accuses Susan Seidel and Jaime Frankfort of duping him into buying the work. According to the suit, he was told that it would be included in an official [...]

  • Former movie producer Harvey Weinstein (L)

    Harvey Weinstein Seeks to Call Expert on 'Recovered' Memories at Rape Trial

    Harvey Weinstein’s attorneys are seeking to call an expert on “recovered memories” at his trial on rape and sexual assault charges. The defense has filed a motion asking to call Deborah Davis, a psychologist and professor at the University of Nevada at Reno. Davis is a frequent defense witness. She co-authored an article in 2006 [...]

  • Tekashi 6ix9ine Docuseries Coming From Showtime

    Tekashi 6ix9ine Docuseries Coming From Showtime and Rolling Stone

    Showtime Documentary Films today announced a new limited docuseries profiling controversial rapper Tekashi 6ix9ine. Titled “SuperVillain” and inspired by the Rolling Stone feature written by Stephen Witt, the three-part series will trace how a New York City deli clerk named Daniel Hernandez became superstar rapper Tekashi 6ix9ine — who racked up 2.6 billion streams and [...]

  • Fader Label Logo

    Fader Label Signs Two New Acts, Boosts Staff

    The Fader Label, home to Clairo, Matt and Kim and others, announced two new signings today along with three new hires on its staff. Charlie Burg and Zachary Knowles have joined the label’s talent roster, while Carson Oberg has come aboard as general manager, Yasmine Panah as project manager and Josh Hymowitz as label coordinator. They [...]

More From Our Brands

Access exclusive content