It was a major plot twist near the climax of their negotiations that doomed Harvey and Bob Weinstein’s quest to reclaim Miramax, the film studio the brothers founded more than 30 years ago, sources told The Post.
According to people familiar with the matter, the Weinsteins walked away from a deal to buy Miramax from Disney after the brothers uncovered a number of issues that they argued should result in Disney lowering the price tag to $500 million, vs. the $625 million they had agreed upon initially.
“The Weinsteins said they found this and that and Disney said, ‘We don’t care,'” said a source.
Indeed, while the Weinsteins and Disney had settled on the $625 million price during what had been exclusive negotiations, it wasn’t until after they had reached that deal that the brothers began uncovering surprises that they argued affected Miramax’s value.
Among the biggest sticking points was that some movie rights that the Weinsteins had thought were part of the purchase price would have had to be negotiated back to Miramax.
Other executives close to talks said that while the two camps had a deal, Disney’s negotiators simply had had enough of the complex structure of the transaction and the large number of parties involved.
“There were so many very complicated issues to work out,” said one executive.
A spokeswoman for Disney refused to comment on negotiations. Officials at Weinstein Co. were unavailable for comment.
While the Weinsteins were getting most of the attention for taking back ownership of the studio they founded in 1979 and named after their parents Miriam and Max, the brothers weren’t putting up the money in the transaction.
That fell to billionaire supermarket magnate Ron Burkle, who operates investment outfit Yucaipa Cos., Fortress Investment Group and Colbeck Capital.
Under the proposed deal, Harvey and Bob would have managed the studio while at the same time running their latest film-studio creation, The Weinstein Co. The financial backers would own Miramax’s 700-title film library, whose assets include “No Country for Old Men” and “The Queen.”
A source said that while the buyers’ due diligence pared down Miramax’s value, Burkle was willing to pay up to $565 million — a figure Disney balked at as recently as Monday before the studio giant formally called off the negotiations.
Now that discussions with the Weinstein camp are officially shelved, Disney is free to discuss a sale with other parties including billionaires Tom and Alec Gores, whose brother, Sam, runs talent agency Paradigm.
But the Gores aren’t only interested in Miramax. They are said to be eyeing Liberty Media’s Overture Films.
A spokesman for the brothers had no comment.
Meanwhile, movie industry executives say the Weinsteins haven’t completely given up hope of reviving talks at a later stage. These sources note that rival bidders such as the Gores have not conducted diligence on Miramax and one source noted the Gores are some way from mounting a rival bid.