Disney might consider Miramax sale
Report says Eisner is considering selling Miramax back to co-founders due to disputes.
June 7, 2004: 7:01 AM EDT
NEW YORK (Reuters) - Walt Disney Co. CEO Michael Eisner would consider selling the Miramax film division back to its founders and Co-chairmen Harvey and Bob Weinstein, according to a published report.
The New York Times reported Monday that the Disney chief is willing to consider a possible sale because of disagreements with the Weinsteins, most recently stemming from a dispute over whether Miramax could distribute "Fahrenheit 9/11," a documentary film critical of President Bush.
Miramax's future came up at a recent two-day retreat for Disney directors where the board discussed alternatives including selling or keeping the unit, two people who attended the meeting told the Times.
Eisner also discussed the idea over dinner with friends in New York recently, saying he might be willing to sell Miramax but did not think the Weinsteins could raise the money to buy it, the Times said, citing a person who attended the dinner.
The newspaper quoted a senior Disney executive as saying: "The business is not for sale. We own 100 percent of it. At the same time, we do have a fiduciary duty to act in the best interest of shareholders and to consider bona fide, credible proposals."
Spokesmen for Disney and Miramax were not immediately available for comment to Reuters.
The Weinsteins' contract to run Miramax, which has produced films such as "Chicago," expires in 2005. Negotiations to renew their contract have been ongoing for over a year, with disagreements arising on matters of compensation, autonomy and film selection.
Disney has already seen Pixar Animation Studios say in January it was breaking off talks with Disney over extending the distribution agreement between the two companies. Some analysts say that Pixar and Miramax together could produce more than half the income for Disney's studios this year, and that while Eisner could afford to lose one or the other, he can't afford to lose both.
If I was Disney I would, but keep a select amount of films (the kids movies spykids, ella enchanted, etc). I would use the money from that sale and buy someone like MGM. That would give them huge vault (4500) of movies covering the 500 they lost and access to all the old oscar winners.
Report says Eisner is considering selling Miramax back to co-founders due to disputes.
June 7, 2004: 7:01 AM EDT
NEW YORK (Reuters) - Walt Disney Co. CEO Michael Eisner would consider selling the Miramax film division back to its founders and Co-chairmen Harvey and Bob Weinstein, according to a published report.
The New York Times reported Monday that the Disney chief is willing to consider a possible sale because of disagreements with the Weinsteins, most recently stemming from a dispute over whether Miramax could distribute "Fahrenheit 9/11," a documentary film critical of President Bush.
Miramax's future came up at a recent two-day retreat for Disney directors where the board discussed alternatives including selling or keeping the unit, two people who attended the meeting told the Times.
Eisner also discussed the idea over dinner with friends in New York recently, saying he might be willing to sell Miramax but did not think the Weinsteins could raise the money to buy it, the Times said, citing a person who attended the dinner.
The newspaper quoted a senior Disney executive as saying: "The business is not for sale. We own 100 percent of it. At the same time, we do have a fiduciary duty to act in the best interest of shareholders and to consider bona fide, credible proposals."
Spokesmen for Disney and Miramax were not immediately available for comment to Reuters.
The Weinsteins' contract to run Miramax, which has produced films such as "Chicago," expires in 2005. Negotiations to renew their contract have been ongoing for over a year, with disagreements arising on matters of compensation, autonomy and film selection.
Disney has already seen Pixar Animation Studios say in January it was breaking off talks with Disney over extending the distribution agreement between the two companies. Some analysts say that Pixar and Miramax together could produce more than half the income for Disney's studios this year, and that while Eisner could afford to lose one or the other, he can't afford to lose both.
If I was Disney I would, but keep a select amount of films (the kids movies spykids, ella enchanted, etc). I would use the money from that sale and buy someone like MGM. That would give them huge vault (4500) of movies covering the 500 they lost and access to all the old oscar winners.
