Bob and Harvey Weinstein’s Ron Burkle-backed deal to regain ownership of Miramax has broken down after weeks at the negotiating table, The L.A. Times reports.The brothers had offered the strongest bid on the indie and art-house film company that they founded and later sold to Disney.
But The L.A. Times’ sources say the deal has fallen apart even though Disney had expected it to be finalised by today:
According to one person close to the negotiations, the deal fell apart due to complications over how Miramax would be integrated into the Weinsteins’ existing company, The Weinstein Co., and other final points that couldn’t be resolved.
The Weinsteins, whose money was to come from Burkle’s Yucaipa Cos. and other investors including Fortress Investment Group, had most recently bid $625 million. However, another person briefed on the matter said that Burkle, who had planned to put in $300 million of his own money and was expecting to raise the balance, was unable to come up with enough money to satisfy Disney.
Disney had originally hoped to get as much as $700 million for Miramax, but appeared willing to accept $625 million.
This could mean Disney will likely go back to the Gores brothers, Tom and Alec, two elusive financiers who had muscled their way into the mix with competitive bids back in April.
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