Disney Miramax Tutor deadline Sept. 7

18 August, 2010

Nearly three weeks after the Walt Disney Co. announced it had reached an agreement to sell Miramax for $660 million to a group led by construction magnate Ron Tutor, the financing for the deal is still not nailed down.

It’s considered unusual to have a deal of this scope without first having the financing in place, and it may be at least another month before there is a resolution, said one executive familiar with the negotiations.

That would mean the designated deadline to close the deal of Sept. 7 would be missed. In that case, Disney may have to extend the deadline or perhaps look for new bidders.

The sticking point on the financing front: the value of Miramax’s 600-plus film library, the executive said. To make that calculation, the Tutor camp has hired Mesa Global, which placed a value of $650 million on Miramax, figuring in its library.

Trying to reach a consensus on the worth of Miramax’s catalog has consistently bogged down the sale of the company since Disney began to entertain offers earlier this year. Given the overall decline in DVD sales, it has become much more difficult to place a value on film libraries.

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