The Weinstein Company hires bankers to sell stake in TV unit
The Weinstein Company has hired Moelis & Co, the advisory firm, to sell a strategic stake in its television business as demand for content increases from new players such as Netflix and Amazon.
TWC, which was founded by Harvey and Bob Weinstein, was in talks with ITV last year to sell the division, which makes Project Runway as well as scripted series such as Scream, for MTV, and War & Peace, which it co-produced with the BBC.
Allen & Co advised on a sale but the talks did not lead to a deal. Harvey Weinstein, TWC’s co-chairman, told the Financial Times that increasing demand for quality television had convinced the company to retain control of the division and seek strategic investors instead.
He compared the growth potential to the early days of Miramax, the independent studio he founded with his brother that helped revolutionise independent film, releasing hits such as Pulp Fiction, The English Patient and Good Will Hunting.
“We have the ability to create something in the world of television that is as big as Miramax was in film,” he said.
“The game plan is to bring in two or three strategic investors,” he added. “We want partners who can help us grow in new markets.”
Bob Weinstein added: “There are so many outlets right now that need quality product.”
TWC declined to comment on its financial performance but a person familiar with the matter said its annual earnings had risen 20 per cent since the ITV discussions to about $50m, giving the unit an approximate value of $650m.
TWC has 15 scripted shows and five non-scripted shows on air and an additional 25-30 in development. It is producing a series based on a book by The Godfather author Mario Puzo, which will star Sylvester Stallone, and is making a non-scripted show for NBC about technology investors called The Incubator and starring Silicon Valley entrepreneur Jason Calacanis.
Bob Weinstein said the company was mining its library of intellectual property to develop television programming, such as an animated series for children based on its Spy Kids movie series.
The sale process comes amid increasing investor interest in content production. John Malone, the cable investor who controls Liberty Media and Liberty Global, recently doubled his stake in Lions Gate Entertainment, with Discovery Communications also investing in the studio.
Mr Malone also holds a stake in Discovery which, together with Liberty Global acquired All3Media, an independent television production group, in 2014 and recently bought Sam Mendes’ Neal Street Productions, which is known for UK series such as Call the Midwife.
ITV has also been on the acquisition trail, buying companies such as Leftfield Entertainment, the producer of non-scripted shows such as Pawn Stars, and Talpa, which makes The Voice.