As the consortium led by construction magnate Ronald Tutor and investment firm Colony Capital nears the deadline to complete due diligence on its $675 million acquisition of Miramax Films, seller Walt Disney Co has given them another obstacle to overcome.
Disney wants the buyers to put up a non-refundable $40 million down payment on the deal by Wednesday, according to a report on NYTimes.com Monday. If they don’t agree, Disney could end their exclusive negotiating period and turn to other buyers, or pull the 611-film library off the market and proceed with distribution of the handful of unreleased Miramax movies (which it is already in the progress of doing).
Tutor was quoted as saying he would not put up that kind of money unless he was assured the deal will close. If Tutor and Colony falter, other bidders are waiting in the wings, including Miramax founders Harvey and Bob Weinstein, who have backing from investor Ron Burkle and New York hedge fund Fortress Investments. However, when that group came close to a deal last month, they wanted to pay only $565 million, at which point Disney balked and turned to the Tutor-Colony group.
The Miramax deal will not have a material impact on Disney’s bottom line, but another delay would represent a publicity problem as the sale process has now dragged out for about five months.
Thank you for visiting Chip and Co. Be sure to sign up for our Daily Newsletter where we deliver the best in Disney News & Planning Tips to your inbox! You can find us all over the internet at Twitter, Facebook, Instagram, Pinterest, Google+, Tumblr, and even our Tee Public Store!
DISCLOSURE: I may be an affiliate for products that I recommend on our website. If you purchase those items through my links I will sometimes earn a commission. You will not pay more when buying a product through my link. In fact, I oftentimes am able to negotiate a lower rate (or bonuses) not available elsewhere. Plus, when you order through my link, it helps me to pay for my website, and continue to offer you lots of free stuff. Thank you, in advance for your support!
Latest posts by Chip (see all)
- Sneak Peek of Disney On Ice presents Follow Your Heart! - August 27, 2016
- Check out these delicious Disney Villain Halloween treats! - August 27, 2016
- A Disney Food Summer Stroll Around Disney Springs - August 26, 2016