Colony Capital no longer wants to buy Weinstein studio

NEW YORK: Colony Capital is no longer interested in buying The Weinstein Company, the film studio co-founded by disgraced Hollywood mogul Harvey Weinstein, sources close to the matter said Tuesday.
"I can tell you Colony is not engaged and has no intention to engage," a source told on condition of anonymity, while another said the investment firm is no longer interested.
The Weinstein Company announced in mid-Oct that Colony Capital had agreed to provide the scandal-plagued studio an "immediate cash infusion," and that the two parties were in talks on a potential sale.
But earlier Tuesday, another source close to the matter indicated that The Weinstein Company did not get the promised funding from Colony Capital.
"The investment was never made," the source said, requesting anonymity to speak about the matter.
Colony Capital – founded by Thomas Barrack, a longtime friend of US President Donald Trump – is concerned about the potential impact of the flood of harassment, sexual assault and rape allegations against Weinstein, and whether the production company could be held liable, the sources said.
Colony Capital declined to comment.
Questions have swirled since the scandal over whether the studio, started by Harvey Weinstein and his brother Bob, could survive.
The Weinstein Company, already weakened by a series of flops, is on the verge of bankruptcy and struggling to stay afloat after several major projects were yanked amid the scandal.
Another firm, Fortress Investment Group, has been working on a potential financing package for the studio valued at roughly US$35 million (RM148 million), The New York Times earlier reported.
The funds would provide cash to keep the studio operational through Jan, the Times said, quoting three unnamed people briefed on the matter.
The Weinstein Company fired co-founder Weinstein, once one of the most powerful men in Hollywood, in early Oct following the first accusations of sexual misconduct.
Police have since launched investigations in London, Los Angeles and New York after around 100 women came forward with allegations against Weinstein.
He denies any non-consensual relations.
Meanwhile, US media reported that Manhattan's district attorney is preparing a criminal case against Weinstein, which he could present to a grand jury as early as next week.
The reports, quoting anonymous law enforcement officials, came after police confirmed they had a credible rape allegation against the producer and were gathering evidence for a possible arrest warrant. — AFP