Mark Cuban Stake in the Weinstein Co. Disclosed in Bankruptcy Filing
"I owned .91 percent of the company. That stake is now worthless," the Dallas Mavericks owner told THR.
There were certain to be surprises as the Weinstein Co. filed for bankruptcy protection on Monday night.
One curious detail that emerged is that billionaire Mark Cuban appears to own at least 2.276 percent of the studio that plunged into chaos in the wake of dozens of women accusing co-founder Harvey Weinstein of sexual harassment and assault. Cuban's stake comes from five Dallas-based companies, including 2929 Media and Radical Investments.
The Chapter 11 bankruptcy papers, filed in Delaware, provide a thorough look at the company's revenue and debt. Cuban's five companies are listed among 32 Class A-1 owners, which also includes Tarak Ben Ammar's A-1 Internation Investments.
But Cuban says the stake is actually smaller, and he only owns the shares bought by Radical Investments. Cuban and Todd Wagner are commonly referred to as the owners of 2929 Media, but Cuban says that is not his investment.
"I owned .91 percent of the company. That stake is now worthless," he told The Hollywood Reporter. "That said, I hope, as a former shareholder, that Ms. Contreras-Sweet is part of any group that buys the company.. I think she would do an amazing job as the CEO. I have had several opportunities to work with her when she was at the [Small Business Association], and her talent and leadership skills are just what the company needs to become an exemplary, profitable firm."
The disclosure comes at a time when Cuban's Dallas Mavericks team has been rocked by allegations of widespread sexual harassment within the organization. The Mavericks hired outside counsel last month to investigate the claims.
The fact that Cuban had invested money in TWC in the past would seem odd given that he also owns Magnolia Pictures, an indie distributor that sometimes competes against TWC for film acquisitions on the festival circuit. Furthermore, Cuban had been openly critical of TWC years ago over the studio's handling of the release of The Road. Cuban also once threatened to block a bid from Weinstein, brother Bob and Ron Burkle to buy Miramax. That bid was eventually unsuccessful.
March 21, 8:25 a.m. This story has been updated with a statement from Cuban