The Weinstein Company, the successful indie studio behind recent hits like Lee Daniels’ The Butler and Silver Linings Playbook, is reportedly close to getting a new credit facility worth $350 million. This would replace other previous financial agreements and will be used so the company can grow through acquisitions.
The news was first reported by The Wall Street Journal and later by TheWrap, both citing a source familiar with the deal.
COO David Glasser told the WSJ that the plan is not to use the funding for new movie projects. Instead, the credit facility offers "flexibility and the potential for growth, including the acquisitions of companies and [content] libraries.”
The facility will be arranged by Union Bank N.A. and it’s expected to be finalized within the next few weeks.
The Weinstein Company is run by movie moguls Bob Weinstein and Harvey Weinstein. They had previously created Miramax in 1979. They had hoped to reacquire the company when Disney sold it in 2010. They were unable to make a deal and Colony Capital, LLC ended up buying Miramax. Colony founder Tom Barrack has not produced any new films for the company since taking it over, instead focusing on the 700-title library. Barrack has said in the past that he has been interested in re-starting production, but would like to do so in partnership with TWC.
“It's how do you marry the two [companies] so that you are serving two masters well,” Barrack told the WSJ. The Weinsteins have talked about reacquiring Miramax, but Barrack believes that it’s worth $1 billion.
The Weinsteins have scored several box office hits lately, including the Best Picture nominees Silver Linings Playbook and Django Unchained, two films that did win Oscars. Last month, The Butler became a surprise hit and has grossed over $100 million.
image: TWC