×
You will be redirected back to your article in seconds

Weinstein Co. Deal Moving Ahead After Three-Hour Meeting With Attorney General

A $500 million deal to sell the Weinstein Co. appears to be on firmer footing after a 3.5-hour meeting Wednesday at the office of the New York attorney general.

Investor Ron Burkle, the key financier behind the deal, met with Attorney General Eric Schneiderman and attorneys from his office. Also participating was Maria Contreras-Sweet, the former head of the Small Business Administration, who has been the public face of the new ownership group. Representatives from the Weinstein Co. were also present for much of the meeting.

The sale, originally expected to be announced last week, has been on hold after Schneiderman’s office filed a discrimination suit against the Weinstein Co. on Feb. 11. Schneiderman has raised a series of objections to the sale, including his concern that Harvey Weinstein and his enablers should not be allowed to profit. The attorney general was particularly concerned about a plan to make Weinstein’s right-hand man, David Glasser, the new CEO. He has also questioned whether a proposed victims’ fund would be adequate to compensate women who have brought claims against the company.

In the meeting, Schneiderman reiterated his view that Glasser would not be an acceptable CEO. Burkle, who is close to Glasser, has been reluctant to dispense with him, even after the Weinstein Co. board fired him for cause last Friday. (On Wednesday morning, Glasser’s attorney threatened to bring an $85 million wrongful termination suit against the company.)

There was discussion of increasing the victims’ fund, though numbers remain somewhat fluid. Various figures — ranging from $10 million to $50 million — have been floated in recent weeks. Schneiderman has openly questioned whether the fund amounts to anything more than the liability limit of the Weinstein Co.’s employment practices insurance policy. He has also expressed concern that the fund would be eaten up by legal fees, with relatively little left for victims.

As the meeting wrapped up, it appeared that the deal was still viable, and that the bidders and the Weinstein Co. could reach an agreement that the attorney general would not feel compelled to oppose.

More Biz

  • WGA Agency Packaging Fight Placeholder Writer

    Gersh Agency Stirs Ire After Canceling Network Meeting for Former Client

    In a sign of hostility in the war between the WGA and Hollywood’s largest talent agencies, Gersh Agency has come under fire from TV and film writers for canceling a network meeting that it had arranged for a now-former client. Writer Jorge Reyes disclosed the incident in a series of tweets on Monday. Reyes asserted [...]

  • Streaming Placeholder

    TikTok Owner Preparing Streaming Service to Rival Spotify (Report)

    ByteDance, the Beijing-based owner of the TikTok video app, is developing a paid streaming music service aimed at the same emerging markets that Spotify and Apple are seeking to explore, according to a report in Bloomberg. The app could be introduced as early as autumn, according to the report, which adds that the company has [...]

  • Stranger Things

    Coca-Cola Will Revive New Coke in Alliance With Netflix, 'Stranger Things'

    A rush of TV watchers to streaming video has prompted Coca-Cola to test an interesting pour. Coca-Cola will bring New Coke back to market for a brief time, all part of a partnership with Netflix, which has featured Coke in its cult-favorite series “Stranger Things.” The third season of the series, set in 1985, will [...]

  • 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 Entertainment Group

    Former Nickelodeon executive Keith Dawkins has partnered with Believe Entertainment 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

    UPDATED with new statement and response filing 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.” Attorneys for Darabont and CAA called AMC’s [...]

More From Our Brands

Access exclusive content