All the juicy details from the sale of Hollywood’s premier film library
The actual price for one of Hollywood’s premier film libraries is closer to $600 million, according to an individual with knowledge of the deal.
As TheWrap had previously reported, Miramax comes with $50 million in cash on its books, as well as $10 million in adjustments.
The Tutor group gave Disney a $40 million non-refundable deposit on Thursday to secure the deal, according to individuals close to the deal.
The deal had been expected to close Wednesday. However, the 24-hour delay was because Tom Barrack of Colony Capital balked at putting down his half of the deposit, according to another individual close to the deal. On Thursday, Tutor decided to put up Barrack's $20 million to get the deal done, the individual said.
Disney declined to comment for this article.
TheWrap also has learned how that $600 million figure with be divided among the Tutor-led consortium of investors. Tutor will put in $100 million, Barrack’s Colony Capital will put in $100 million, $300 million will come from debt financing through various banks, and the remaining $100 million will be contributed by the other partners. Besides Tutor and Barrack, philanthropist Jerome Schwartz and two others are minority investors.
Noticeably missing from the official release touting the deal was Morgan Creek.
Morgan Creek's CEO, James Robinson, is still expected to be a partner in Miramax, but talks between Robinson and Tutor have hit a snag, according to an individual with knowledge of the negotiations.
Robinson, who boasts the most film business experience of the investors, is seeking to have a more significant role in the company, but Tutor has yet to make a decision on what part the veteran executive will play. Robinson won’t commit any capital to the deal until a decision is reached.
Negotiations between Tutor’s group and Disney essentially ended on Friday. The only reason for the nearly weeklong delay until the deal officially closed was the documentation process.
As the deal closed, in the room on Tutor’s side were controversial film financier David Bergstein, Colony Capital's Richard Nanula and attorney Michael Barnes. Nick Van Dyk, a member of Disney's corporate strategy planning team, represented the studio.
Mesa Globall advised Tutor on the transaction.
Update: Friday, 5:38 p.m.
"West Wing" star Rob Lowe has confirmed that he is one of a group investors who bought Miramax from Disney on Thursday.
Lowe's involvement came through a media fund he formed with Colony Capital's Tom Barrack. Barrack and construction magnate Ron Tutor are the group's lead investors. No word on the size of the fund.
"The acquisition of a classic brand like Miramax is an exciting first step in my partnership with Tom Barrack and Colony Capital," Lowe said in a statement. "This represents an exciting new chapter for me. And Tom and I could not have a better partner on our first deal together than Ron Tutor."