Lantern Capital Partners will pay $287 million for The Weinstein Co. even though the two previously agreed on a price of $310 million, the troubled company’s attorney, Paul Zumbro, said at a Delaware bankruptcy court on Friday.
The purpose of the $23 million reduction is to get the process moving again, as it has dragged on since a judge approved the transaction on May 8. Apparently, parties have made claims regarding intellectual property against TWC, so rather than delay the transaction further TWC agreed to simply drop the price as a way to protect Lantern.
Zumbro previously predicted the sale would close by the end of this month, though he said Friday it wouldn’t officially close until the middle of next month, though insiders say Lantern will begin operating as if it owns the entity on July 1. A name change is in the the works, but for now they are calling it Lantern Holding Co.
The deal also calls for the assumption of roughly $115 million in liabilities related to certain movies and TV shows that TWC is working on.
Harvey Weinstein, the former co-chairman who was fired in October over numerous allegations of sexual misconduct, will not be part of the company under Lantern, nor will his brother, Bob.
Some celebrities — Meryl Streep, Eminem, Quentin Tarantino — have objected to the bankruptcy sale claiming TWC owes them money that they now may never see.
While Lantern was the only bidder for TWC, Inclusion Media, founded by Broadway producer Howard Kagan, had reportedly tried to outbid Lantern back in May with an offer of $325 million, but its request to extend the deadline for bids was rejected, and the bid did not come through.