Weinstein Co. Will Sell Assets to Lantern, Instead of Kagan
(Bloomberg) -- Weinstein Co., the movie embroiled in a sexual-assault scandal, has agreed to sell its assets to the Dallas-based fund Lantern Capital, thwarting a last-minute bid backed by Broadway producer and former Harbinger Capital partner Howard Kagan.
The deal with Lantern was forged with the input of the office of the New York attorney general, according to a company statement. There were no other bids that exceeded Lantern’s, the company said of the offer, which was previously reported to be over $400 million.
Weinstein Co. confirmed reports that it received a letter of interest from Inclusion Media, which is backed by Kagan, after the bid deadline. The interest fell short of requirements, the company said. It also was conditional, offered less value and didn’t include a purchase agreement, financing commitment or deposit, according to the statement.
“Lantern’s bid clearly achieves the highest and best value for the estate and its creditors,” said Ivona Smith, a member of the Weinstein Co. board.
Kagan had suggested his offer would be attractive to the victims of Harvey Weinstein, who has been accused of sexual assault by many women, but the debtors concluded his offer was not bona fide and “in furtherance of its fiduciary duty, the board selected the bid that offered, with certainty, the most overall value to the estate,” according to the statement.
The New York attorney general wasn’t involved in the bid selection or development of the winning bid, according to press secretary Amy Spitalnick.
“From the start, we’ve underscored the importance of adequately compensating victims, protecting current and future employees, and ensuring that wrongdoers are not rewarded,” Spitalnick said in an email. “We’ll continue to push for those critical goals. Our lawsuit remains active and our investigation remains ongoing.”
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