Why Does Disney want to sell Miramax?

Grizzly Hall 71

Grizzly Hall 71

New Member
Original Poster
I don't understand. All the movies they have made are going to make millions on DVD releases (or re-releases). With a library with movies like Pulp Fiction (7 Oscar nominations), City of God (4 Oscar nominations and Very well recieved), Shakespeare In Love (12 Oscar nominations), and Good Will Hunting (9 Oscar nominations).

I've done research but really don't understand why they want to sell such an extensive library of movies.

Please explain.
Thanks.
 
trr1

trr1

Well-Known Member
read this

<TABLE class=bea-portal-layout-flow cellSpacing=0><TBODY><TR><TD class=bea-portal-layout-placeholder-container>
Disney sets deal to sell Miramax<SCRIPT language=javascript> document.title = "Verizon Central Newsroom - "+"Disney sets deal to sell Miramax"; </SCRIPT>​
<TABLE cellSpacing=0 cellPadding=0><TBODY><TR><TD style="PADDING-LEFT: 10px; FONT-WEIGHT: bold; FONT-SIZE: 9px; COLOR: #959595; FONT-FAMILY: helvetica; POSITION: relative">United Press International </TD></TR></TBODY></TABLE>



The Walt Disney Co. has agreed in principle to sell Miramax Films for about $650 million, sources told the Los Angeles Times.
The report said the deal is with an investor group led by construction executive Ron Tutor, but which includes the Los Angeles-based private-equity firm Colony Capital. Also on board are minority investors James Robinson, the chief executive of film production and financing company Morgan Creek Productions, and an unidentified Middle East investor group, the Times said.
The report said the group would come up with $300 million in cash and finance the rest with debt. Miramax, newly reconstituted, would produce several new films each year and distribute a library of 611 films. Disney decided in January it wanted to get out of the independent film business, focusing instead on films with blockbuster potential, the Times said.
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unkadug

unkadug

Follower of "Saget"The Cult
trr1 said:
read this

<TABLE class=bea-portal-layout-flow cellSpacing=0><TBODY><TR><TD class=bea-portal-layout-placeholder-container>
Disney sets deal to sell Miramax<SCRIPT language=javascript> document.title = "Verizon Central Newsroom - "+"Disney sets deal to sell Miramax"; </SCRIPT>​
<TABLE cellSpacing=0 cellPadding=0><TBODY><TR><TD style="PADDING-LEFT: 10px; FONT-WEIGHT: bold; FONT-SIZE: 9px; COLOR: #959595; FONT-FAMILY: helvetica; POSITION: relative">United Press International </TD></TR></TBODY></TABLE>


</TD></TR><TR><TD class=bea-portal-layout-placeholder-container><TABLE class=bea-portal-layout-flow cellSpacing=0><TBODY><TR><TD class=bea-portal-layout-placeholder-container width="50%"><TABLE class=article_content width=400 border=0><TBODY><TR><TD>
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The Walt Disney Co. has agreed in principle to sell Miramax Films for about $650 million, sources told the Los Angeles Times.
The report said the deal is with an investor group led by construction executive Ron Tutor, but which includes the Los Angeles-based private-equity firm Colony Capital. Also on board are minority investors James Robinson, the chief executive of film production and financing company Morgan Creek Productions, and an unidentified Middle East investor group, the Times said.
The report said the group would come up with $300 million in cash and finance the rest with debt. Miramax, newly reconstituted, would produce several new films each year and distribute a library of 611 films. Disney decided in January it wanted to get out of the independent film business, focusing instead on films with blockbuster potential, the Times said.
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Click to expand...

Just curious as to why you decided to put javascript in your post? Was it really necessary to change the title bar of this page? :shrug:

HTML: 
<TABLE class=bea-portal-layout-flow cellSpacing=0><TBODY><TR><TD class=bea-portal-layout-placeholder-container>[LEFT]Disney sets deal to sell Miramax<SCRIPT language=javascript>				document.title = "Verizon Central Newsroom - "+"Disney sets deal to sell Miramax";			</SCRIPT> [/LEFT]
 
trr1

trr1

Well-Known Member
unkadug said:
Just curious as to why you decided to put javascript in your post? Was it really necessary to change the title bar of this page? :shrug:

HTML: 
[LEFT]Disney sets deal to sell Miramax                document.title = "Verizon Central Newsroom - "+"Disney sets deal to sell Miramax";             [/LEFT]
Click to expand...

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i thought i would put a link in to where the article was found but it doesnt work so i just took it out
 
MKCP 1985

MKCP 1985

Well-Known Member
Miramax was formed by the Weinsteins, and was named after their parents, Miriam and Max. Disney forced the Weinbergs out a couple years ago and the Miramax film company has been a shell of itself ever since.
 
jt04

jt04

Well-Known Member
Grizzly Hall 71 said:
I don't understand. All the movies they have made are going to make millions on DVD releases (or re-releases). With a library with movies like Pulp Fiction (7 Oscar nominations), City of God (4 Oscar nominations and Very well recieved), Shakespeare In Love (12 Oscar nominations), and Good Will Hunting (9 Oscar nominations).

I've done research but really don't understand why they want to sell such an extensive library of movies.

Please explain.
Thanks.
Click to expand...

I can explain it all in one word, "Franchise". Independent films don't lend themselves to creating franchise.

But I'll give you a better reason that may or may not have been part of the thinking. Most of the miramax library isn't what a large chunk of Disney fans expect from the company. And miramax did far more harm to Disney's bottom line that it could ever make up for.

And the un-Eisnering continues. They are keeping the good and improving it, but step by step, the mistakes are being fixed. And that 660 million Disney got can't hurt either.

Now they just need to figure out what to do with ABC.:cool:
 
HM Spectre

HM Spectre

Well-Known Member
Grizzly Hall 71 said:
I don't understand. All the movies they have made are going to make millions on DVD releases (or re-releases). With a library with movies like Pulp Fiction (7 Oscar nominations), City of God (4 Oscar nominations and Very well recieved), Shakespeare In Love (12 Oscar nominations), and Good Will Hunting (9 Oscar nominations).

I've done research but really don't understand why they want to sell such an extensive library of movies.

Please explain.
Thanks.
Click to expand...

It doesn't matter what's in the library, Miramax was a bad fit for Disney. One of Disney's biggest strengths is the Disney brand on their films/ entertainment and because of the edgier nature of the movies Miramax put out, they couldn't associate their brand with it directly. The kind of films put out by Miramax don't mesh much with the ideal Disney image and too much association tarnished the Disney brand more than anything. Not to mention, Miramax hasn't put out many big hits lately unlike their success in the 90s.

It's a good idea for both sides. Miramax now gets a new chance to become what it once was (since Disney had gutted it last year) and Disney can now focus itself on its core businesses more. Miramax was just another Eisner blunder in terms of overall fit with the company... I'm glad to see it getting corrected.
 
MarkTwain

MarkTwain

Well-Known Member
On the one hand, I'm disappointed, because it was Miramax that really allowed Disney to shine at the Oscars, and impress the serious movie-critics.

On the other hand... that's why they now have Pixar. :lol:
 
W

wizards8507

Active Member
Not everything is about the brand or licensing. Sometimes investments are just that... investments. McDonald's once had a hand in Chipotle and Boston Market. When they sold them off, it wasn't because they thought the two were bad companies or bad brands, they just felt that the smartest strategic move was to divest.
 

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