DALLAS _ Dallas-based Lantern Capital Partners has agreed to purchase The Weinstein Co. as part of the movie studio's bankruptcy filing late Monday.
Lantern Capital co-founders Andy Mitchell and Milos Brajovic are making their first investment in the movie business by agreeing to continue to operate The Weinstein Co. as a going concern. The movie company has estimated assets of $225 million, including a 277-film library and the television show Project Runway.
The agreement is pending the approval of the U.S. Bankruptcy Court in Delaware. The Weinstein Co. board said it selected Lantern in part due to Lantern's commitment to maintain the business and employees versus selling off the company's assets.
Mitchell and Brajovic said in a statement Monday that they have been evaluating the studio over the last several months and believe they can "improve the performance of the company's businesses with the utmost respect to all employees and promote a diverse and transparent environment."
The statement continued that they "promise to reposition the business as a preeminent content provider, while cultivating a positive presence in the industry." Lantern Capital, a private equity firm founded in 2010, specializes in turning companies around. Its recent deals include Bluejack National, a luxury resort north of Houston, and the Montage Kapalua Bay hotel and residential development on Maui.
Variety reported Lantern's bid is somewhere in the range reported Lantern's bid is somewhere in the range of $300 million to $320 million, according to one source, while it quoted a second source that said it was substantially higher, at almost $450 million. Both figures are less than the $500 million bid from billionaire Ron Burkle and others, which collapsed in early March, Variety reported. Lantern Capital was also part of the earlier bidding.
It's not clear how much money will be available for dozens of victims of co-founder Harvey Weinstein's alleged harassment that occurred over a period of more than 30 years.
The Hollywood movie studio has become the poster child of the #MeToo movement.
The studio has been financially rocked since October when The New York Times and The New Yorker reported decades of sexual harassment by Harvey Weinstein, who has denied "nonconsensual sex."
The Weinstein Co. board, which fired Weinstein last fall, said the sale through the bankruptcy process is "an important step toward justice for any victims who have been silenced by Harvey Weinstein."
Harvey Weinstein used non-disclosure agreements as a secret weapon to silence his accusers, reports have said. Effective immediately, those "agreements" end, the company said, adding it "expressly releases any confidentiality provision to the extent it has prevented individuals who suffered or witnessed any form of sexual misconduct by Harvey Weinstein from telling their stories."
The Weinstein statement continued that "no one should be afraid to speak out or coerced to stay quiet." The statement thanks "the courageous individuals who have already come forward. Your voices have inspired a movement for change across the country and around the world."
The board statement said it "regrets that it cannot undo the damage Harvey Weinstein caused, but hopes that today's events will mark a new beginning."
"Even as the company heads into bankruptcy, the company remains committed to doing whatever it can to maximize value for its creditors and, in cooperation with Attorney General, continue its pursuit of justice for any victims, the statement said.
In February, New York Attorney General Eric Schneiderman filed a civil rights lawsuit against The Weinstein Co., Harvey Weinstein, and Robert Weinstein for egregious violations of New York's civil rights, human rights, and business laws.
Harvey Weinstein's brother and chairman, Robert Weinstein, said Monday the board was looking for a sale that would preserve as many jobs as possible and pursue "justice for any victims." The movie studio employs 100 to 150 people.
