A media analyst says The Weinstein Company won't fare well in an auction: 'People have looked at it and it's more trouble than it's worth'
- The Weinstein Company filed for bankruptcy on Monday evening.
- A stalking horse bid for the company has been made by private equity firm Lantern Capital.
- The hope is that the bid will lead to better offers, but media analyst Hal Vogel told Business Insider that TWC is "more trouble than it's worth."
On Monday, The Weinstein Company filed for bankruptcy and the Dallas-based private equity firm Lantern Capital has made a stalking horse bid for the company.
The hope is that the bid by Lantern Capital will lead to better offers for the movie and TV indie studio in a bankruptcy court-supervised auction. But some are very skeptical the Weinsteins will be getting many attractive offers.Though estimates of the company value it between $500 million and $1 billion, Lantern Capital put in a cash bid of only $310 million (plus $125 million in assumption of liabilities and $15 million in fees related to current projects), according to Deadline. This is after a pre-bankruptcy deal of $500 million for the company by an investment group led by Maria Contreras-Sweet, the former head of the U.S. Small Business Administration, fell through at the eleventh hour earlier this month.
"People have looked at it and it's more trouble than it's worth," Vogel said. "Unless they put it all up for auction like a garage sale and sell individual pieces, but the goal is still to sell it as a whole and people are not eager to buy it as a whole."
Along with 277 film library titles, the company also has the TV show "Project Runway," which individually would be attractive to some, but taking all of TWC needs a special kind of taker.
This is especially true given the fact that along with filing for bankruptcy, TWC also announced that it had canceled all its nondisclosure agreements the company's former head, Harvey Weinstein, initiated with women who had accused him of sexual misconduct.
More than 70 women have accused Weinstein of varying degrees of sexual misconduct - including harassment, assault, and, in some cases, rape. The lifting of the NDAs could potentially mean more accusations, which would mean more litigation costs for a potential buyer."It has a lot of major unknowns," Vogel said of The Weinstein Company.