UPDATE: (From RawStory)
A few days ago I wrote this diary (just below the line), to much excitement from many corners in Kosville. A woman-led Movie Studio that is committed to helping the victims of TWC, AND creating intelligent content for women? Get me my vapors, I’m about to faint.
Unfortunately, the TWC purchase had a few very big asset obstacles for Ms. Contreras-Sweet and her investors. So, they cancelled the deal, but with a caveat:
“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 in a statement.
But Contreras-Sweet did not exclude future attempts to create a new firm from the ashes of Hollywood mogul Weinstein’s downfall for alleged sexual misconduct.
“I believe that our vision to create a women-led film studio is still the correct course of action,” she said.
“To that end, we will consider acquiring assets that may become available in the event of bankruptcy proceedings, as well as other opportunities that may become available in the entertainment industry.”
I have a feeling Contreras-Sweet is going to make her dream a reality.
___________________________________________________________________________________________________
This woman is Impressive. She recognized an opportunity to change the culture of misogyny in possibly the most powerful social medium: film, and she acted on it. She and several investors put forward what is commonly referred to as a “White Knight bid” to acquire The Weinstein Company (TWC) “in order to launch a new company….run by a majority of independent women” (51%) with the intent to create new content, save jobs, pay existing debts that would bankrupt small businesses related to TWC, and compensate victims. In terms of sharp business sense, clear vision, morals, ethics, and plain old kindness, this woman should make us all swoon.
Contreras-Sweet released this statement:
Our team is pleased to announce that we have taken an important step and have reached an agreement to purchase assets from The Weinstein Company in order to launch a new company, with a new board and a new vision that embodies the principles that we have stood by since we began this process last fall. Those principles have never wavered and have always been to build a movie studio led by a board of directors made up of a majority of independent women, save about 150 jobs, protect the small businesses who are owed money and create a victims’ compensation fund that would supplement existing insurance coverage for those who have been harmed. The cornerstone of our plan has been to launch a new company that represents the best practices in corporate governance and transparency.
This next step represents the best possible pathway to support victims and protect employees.
We are grateful to the New York State Attorney General’s office for their efforts in helping us reach an agreement and we are grateful to our investors who have believed in this process and in the compelling value of a female-led company. We also want to thank all the parties who returned to the negotiating table to help us reach this development.
I have had a long-standing commitment to fostering women ownership in business. This potential deal is an important step to that end.
Here is a brief synopsis of what transpired the past few months: (from IndieWire)
- Contreras-Sweet pitched the TWC Board of Directors on Nov. 8, ‘17 to buy the very distressed company, the letter of which was published by Deadline.
- The Contreras-Sweet-led group, which includes billionaire investor and philanthropist Ron Burkle, offered $275 million, but the final terms have not yet been disclosed.
- NY AG Schneiderman filed a discrimination suit on Feb. 11, 2018 against TWC, throwing a wrench into the mix, resulting in leverage to pressure Contreras-Sweet to not keep COO David Glasser. Glasser was then unanimously fired by the existing board “for cause.”
- A source with knowledge of the deal told IndieWire that the company will soon be renamed.
From Deadline:
- Her advisors include Loeb & Loeb, Ernst & Young and FTI’s Roy Salter.
- Several high-profile films and t.v. series that were shelved after the Weinstein scandal will probably now be made or finished.
- Victims will be “made whole”.
There are a few things that seem almost unbelievably conscientious and noble about Contreras-Sweet’s deal in this age of ruthless cruelty and toxicity: (also from Deadline)
1. Her investor group asked for Gloria Allred’s blessing before they went forward, which she gave. (Allred is arguably the preeminent women’s rights attorney in the US, who represents several of Weinstein’s accusers who have filed civil suits.) This means that contingency funds will be set aside and paired with insurance claims to make victims whole.
2. Staff will keep their jobs in order to provide for their families.
3. The old Board is gone. The new Board is mostly women.
Deadline posted her pitch letter to TWC (same link), which has to be read to be fully appreciated, but here is a highlight:
“I believe we have now reached a crossroads where it is imperative that a woman-led board acquire control of the Company and create content that continues to inspire audiences around the world, especially our young girls and boys. Therefore, I feel compelled to submit the following proposal to acquire The Weinstein Company...” (my underline).
In order for Democrats, and especially Democratic women, to further our interests, this is exactly the tack we need to take. It is exciting that such a powerful and altruistic woman has seized this opportunity.