×
You will be redirected back to your article in seconds

Weinstein Co. Sale Not Over Yet, as Dark Horse Submits Late Bid

The Weinstein Co. sale is not settled yet, as a second buyer submitted a late bid for the company on Tuesday.

A source told Variety that the bidder is Howard Kagan, a former partner at Harbinger Capital who has produced a number of Broadway shows. Kagan’s $315 million bid would keep the company as a going concern, and would include a $30 million fund for victims of Harvey Weinstein’s alleged sexual abuses.

Lantern Capital, the Dallas-based private equity firm, was the only bidder to submit a bid for the whole company before the 5 p.m. deadline on Monday. Lantern has offered $310 million, plus the assumption of certain liabilities. Sonar Entertainment submitted a smaller bid on Monday for some of the TV library, according to Dan Gagnier, a spokesman for the company.

It is unclear whether the Weinstein Co. will consider the Kagan bid. The Weinstein Co. did not respond to a request for comment. Kagan will have to argue for an extension of the Monday deadline. If he is successful on that front, an auction would be held on Friday.

New York Attorney General Eric Schneiderman issued an open letter on Monday calling for bidders to establish a separate victims’ fund and adopt workplace practices to prevent sexual harassment. Lantern has not committed to create a fund, which would seem to require the consent of secured creditors.

The committee of unsecured creditors, which represents Weinstein victims, has also raised an objection to the Lantern sale.

Five plaintiffs in a Weinstein class action suit issued a statement on Tuesday supporting the Kagan bid, which they said would set aside $30 million for victims in the class action case.

“Mr. Kagan has a long history of supporting and promoting women and diversity, and has stated that he intends to ensure that the content of the new company is likewise forward-thinking and will serve as a model for the industry,” said Cris Armenta, one of their attorneys. “We believe this is the best possible course of action for the class of women who suffered unspeakable harassment at the hands of Harvey Weinstein.”

The five plaintiffs are Katherine Kendall, Zoe Brock, Sarah Ann Masse, Melissa Sagemiller and Nannette Klatt. A sixth plaintiff, Louisette Geiss, chairs the unsecured creditors committee and did not join the statement of support for Kagan.

In a press release, Elizabeth Fegan, another attorney for the class action plaintiffs, said the group is opposed to the Lantern bid.

“Lantern’s bid in no way addresses the victims of Harvey Weinstein’s sexual assault enterprise, and would sweep the 100+ instances of sexual assault, rape and more under the rug. We’re here to show them the assault survivors will not go away quietly,” Fegan said. “Victims have already shown they will no longer be silenced, and we intend to protect them from being further harmed.”

It remains likely that Lantern will end up owning the company, but it is not a done deal yet.

More Biz

  • Doug Davis and Jodie ShihadehVariety Power

    Jodie Shihadeh Named Partner at The Davis Firm

    Jodie Shihadeh has been named Partner at The Davis Firm, PLLC. She joined the firm in 2011 and rose from associate to Managing Attorney and now partner. She graduated from Boston College and received her law degree from Fordham University School of Law in 2011. While still in law school she interned in the Business [...]

  • Peak TV Saturation TV Placeholder

    Nickelodeon Alum Keith Dawkins Sets Kidvid Partnership With Believe Media Group

    Former Nickelodeon executive Keith Dawkins has partnered with Believe Media Group to develop children’s programming. Dawkins will partner with Believe under his newly formed Rock Hill Media Ventures, which aims to advise companies in media, entertainment and sports on working with diverse and emerging talent. Dawkins previously spent 17 years at Viacom, most of which [...]

  • CBS Studios Exterior

    CBS Credit Union Manager Pleads Guilty to $40 Million Fraud

    The manager of a credit union for CBS employees pleaded guilty in Los Angeles federal court on Monday to a $40 million embezzlement scheme. Edward Rostohar, 62, was arrested in March after the scheme began to unravel. According to prosecutors, he admitted to stealing money from the bank for the last 20 years. Rostohar is [...]

  • Norman Reedus as Daryl Dixon - The

    CAA's Packaging Fee Becomes Flashpoint in 'Walking Dead' Litigation

    The issue that is at the heart of the WGA’s present standoff with talent agencies has flared up as a source of tension in the litigation between AMC Networks and Frank Darabont and CAA over profit participation on “The Walking Dead.” The practice of talent agencies receiving packaging fees for helping to assemble the creative [...]

  • Sony Music to Deliver ‘Real Time’

    Sony Music to Deliver ‘Real Time’ Data, Royalty Payments to Artists

    Sony Music today announced two new payment features for its artists — “Real Time Royalties” and “Cash Out” — through its artist portal beginning this fall. 

A memo sent to artists Monday morning and obtained by Variety says  the initiatives will “allow our artists and royalty participants to view and withdraw earnings faster than ever [...]

  • Whitney Houston

    Whitney Houston Estate Plans Hologram Tour, Album, Musical

    In the seven years since Whitney Houston’s death, there has been relatively little of the asset-exploitation that usually follows the passing of a music icon, apart from a smattering of previously unreleased recordings, a pair of harrowing documentaries and a lot of unflattering press. But according to an article in the New York Times, the [...]

  • rocketman-elton-john-costume

    Elton John Biopic 'Rocketman' Taps Lucky Brand Collaboration as Part of Promo Push

    Paramount has set a May 28 release date for its Elton John-inspired clothing collection with retailer Lucky Brand, which celebrates the performer’s iconic style and new biopic, “Rocketman” (see tickets and showtimes here). The limited-edition collaboration arrives in stores three days before the film hits theaters, though it’s available for purchase right now on LuckyBrand.com. [...]

More From Our Brands

Access exclusive content