The on-again, off-again bid by former Obama Administration official Maria Contreras-Sweet and billionaire Ron Burkle to purchase The Weinstein Co. production house collapsed Tuesday.
“We Received Disappointing Information”
“All of us have worked in earnest on the transaction to purchase the assets of The Weinstein Co.,” Contreras-Sweet said. “However, after signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction.
“As a result, we have decided to terminate this transaction,” she said.
Sexual Violence Charges Against Weinstein
The proposed purchase of the New York-based production company — which was thrown into turmoil by sexual harassment and assault allegations against co-founder Harvey Weinstein — appeared to be crumbling last week, but Contreras-Sweet announced Thursday that a $500 million purchase agreement had been reached.
Contreras-Sweet did not specify Tuesday what caused the deal to collapse. Variety reported that the purchasers discovered new information about previously undisclosed liabilities. Sources also told Variety that both sides were still haggling over the amount of an initial payment — thought to be about $1.5 million — that was due Tuesday.
Hopes To Create Women-Led Film Studio
Contreras-Sweet, who was administrator of the Small Business Administration from 2014-17, said she still has a vision “to create a women- led film studio.” She said she and her partners “will consider acquiring assets that may become available” if The Weinstein Co. declares bankruptcy.
“I remain committed to working to advance women’s business ownership in all sectors and to inspire girls to envision their futures as leaders of important companies,” she said.