Disney Miramax Filmyard Holdings deal news
6 September, 2010
James Robinson, founder of Morgan Creek, and philanthropist Jerome Swartz have backed out of the deal. Tutor’s group, called Filmyard Holdings, bought Miramax for $660 million, significantly higher than the $565 million offered by Burkle and the Weinsteins, and way higher than what the other earlier bidders had said the place was worth. Valuation has been messy because it centers on figuring out how much the film library is worth. Studio film libraries are notoriously difficult to value, but Barrack and Tutor are serious money guys, and it’s hardly surprising that they were able to scrounge up the necessary bank financing. Comerica is taking the lead, with Bank of American and Union Bank also participating.
Comerica (NYSE:CMA) happens to be one of the major creditors in the bankruptcy involving companies controlled by Hollywood producer David Bergstein, the guy who partnered with Tutor in the Miramax purchase.(Bergstein denies that he owes anything to Comerica. Tutor now says that Bergstein will have no role in the Miramax operations. The deal is supposed to close by the end of the year.
The studio was created by the Weinstein brothers and named for their parents. If the floor falls out from under the Tutor purchase, it’s unclear whether the Weinstein’s bid of $565 million will be considered viable again.