Advertisement
YOU ARE HERE: LAT HomeCollections

Weinstein Co. Raises Funding

October 07, 2005|From Times Staff and Wire Services

Brothers Harvey and Bob Weinstein, who founded Walt Disney Co.'s Miramax Film, have raised $230.5 million in equity as part of the fundraising for their new movie studio.

Weinstein Co. sold shares to 18 investors, according to a recent regulatory filing. The Weinsteins are in negotiations with other investors that may increase the financing to $420 million, and possibly more, a source involved in the talks said.

New York-based Weinstein Co. also plans to raise about $500 million in debt, which would bring the company's financing to about $1 billion. The company said in a statement that it was confident it would have adequate financial resources, but declined to comment further.

Weinstein Co. is working through Goldman Sachs Group Inc., which also is an investor. Other investors, sources said, include Japan's SoftBank Co., French television broadcaster TF1 and Tarak Ben Ammar, the head of Quinta Communications. The company also is seeking a pay-television deal.

The Weinstein brothers, who left Disney last month, have spent five months in talks with investors to raise the money needed to start their new venture. The length of time to line up financing may be a reflection of the slide in U.S. box-office revenue and disappointing results from some studios.

"This is a difficult environment for a new film company," said Jack Liebau, president of Pasadena-based Liebau Asset Management Co. "Home-video returns and the box-office decline represent some real challenges."

Advertisement
Los Angeles Times Articles
|
|
|