Two investors out of Miramax deal
Ron Tutor, Colony must spend more, find new partnersMorgan Creek Prods. founder James Robinson, who had eyed a role as a major investor in Miramax Films, along with construction magnate Ron Tutor and private equity firm Colony Capital, is out of the deal, the LA Times reported.
Another potential investor, philanthropist Jerome Swartz has also decided not to invest the $25 million-$50 million he had considered putting up.
Talks with Robinson broke down mainly over issues of managerial control and the length of time that Morgan Creek would handle foreign distribution. Robinson had expected to be an equal partner with Tutor and run day-to-day operations of Miramax, but that Tutor and Colony objected.
Robinson was prepared to put up $75 million-$100 million of the $660-million purchase price for Miramax, for which a Tutor-Colony led investor group recently signed a definitive purchase agreement with the Walt Disney Co. Morgan Creek was to sell Miramax's movies overseas.
With two potential partners gone, "Tutor and Colony will now have to either pony more of their own money or find other investors to make up the equity gap," the LA Times said.