Disney has closed a deal to sell the movie house Miramax to Ron Tutor and Colony Capital for $660 million. Via Deadline:
All in all, $660 million is a very good price for the company because film library values have taken a hit as DVD/video has flattened. True, Disney once placed a sky-high $1.2 billion pricetag on the Miramax library. The studio hoped to get around $800 million, then $700 million, and this number comes awfully close to that. The final figure exceeds the $625M-$650M which the Weinstein brothers/Ron Burkle/Fortress-Colbeck partnership seemed ready to pay until talks broke down. Due diligence showed that Miramax is sitting on a lot of cash, as much as $300M in receivables. Also, I’ve learned that Disney stands to make even more because it also will collect distribution fees on theatrically released Miramax and non-Miramax films it distributes on behalf of the buyer for up to a year.
The press release follows after the jump.
Burbank, California, July 29, 2010 — The Walt Disney Company announced today the sale of Miramax Films to Filmyard Holdings LLC for over $660 million subject to certain adjustments. Partners in Filmyard include Los Angeles businessmen Ron Tutor, Tom Barrack, Colony Capital LLC and other individuals. The transaction is subject to certain regulatory approvals and is expected to close between September 10, 2010 and the end of the calendar year.
The sale of Miramax Films includes rights in over 700 film titles, including Academy Award winners like Chicago, Shakespeare in Love and No Country for Old Men. Also included are non-film assets, such as certain books, development projects and the “Miramax” name.
“Although we are very proud of Miramax’s many accomplishments, our current strategy for Walt Disney Studios is to focus on the development of great motion pictures under the Disney, Pixar and Marvel brands,” said Robert A. Iger, Disney’s President and CEO. “We are delighted that we have found a home for the Miramax brand and Miramax’s very highly regarded motion picture library.”
“I am delighted and honored to acquire the Miramax library,” said Ron Tutor. “On behalf of my partners Tom Barrack and Colony Capital, we look forward to sharing this high quality content with the world in every form of media for many years to come.”