Weinstein Brothers, Rainbow Strike Video-Distribution Deal
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
May 19, 2005 12:06 p.m.
After a highly publicized split with Walt Disney Co. earlier this year, Bob and Harvey Weinstein announced a video-distribution deal with Rainbow Media Holdings.
Financial details of the multiyear agreement weren't disclosed, though both parties will share equally in the profits.
Under terms of the pact, Rainbow -- a division of Cablevision Systems Corp. that owns cable-television networks, including AMC, Fuse, IFC and WE -- and Weinstein Co. will co-own a film library intended for TV and home-video distribution. Titles are to be selected by Weinstein Co. and funded by Rainbow.
Weinstein Co. also will be the exclusive home-video distributor for Rainbow's IFC Films division, which distributed "My Big Fat Greek Wedding," and act as the exclusive sales agent for the foreign rights of IFC Films. Rainbow's networks will receive first option for the U.S. TV premieres of films.
"At Miramax, my brother and I learned the power of film libraries and built an 800-title film library," Harvey Weinstein said in a written statement Thursday. "We're going to do that again."
The Weinsteins, after separating from Disney back in March, faced the challenge of raising money for their new film company and enlisted the help of Blackstone Group and Goldman Sachs Group Inc. The duo, who convinced Disney to increase their budget to a sizable $700 million back in 2000, launched a long list of cash cows including "Pulp Fiction," "Chicago" and "Shakespeare in Love" under their Miramax label, which Disney retained under the separation deal. Disney also kept Miramax's film library.
The Weinsteins kept their Dimension Films label, some films in progress and the right to make Dimension sequels, such as "Scary Movie 4." Weinstein Co. is the temporary name the brothers gave their venture following the split with Disney. The brothers agreed to continue to oversee Disney's Miramax Books through September 2007 to complete the publication of books they have initiated.
"IFC is thrilled to be able to work closely with the Weinsteins to expand the distribution of our films around the world," IFC President Jonathan Sehring said in a written statement. "They are providing their years of experience and success, which will no doubt provide our brand and our film titles with even greater visibility and recognition among film fans," Mr. Sehring added.
Representatives from Rainbow Media and Weinstein Co. declined to comment on the financial terms of the deal and whether the companies have any other agreements with each other in the works.
Write to the Online Journal's editors at newseditors@wsj.com.
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
May 19, 2005 12:06 p.m.
After a highly publicized split with Walt Disney Co. earlier this year, Bob and Harvey Weinstein announced a video-distribution deal with Rainbow Media Holdings.
Financial details of the multiyear agreement weren't disclosed, though both parties will share equally in the profits.
Under terms of the pact, Rainbow -- a division of Cablevision Systems Corp. that owns cable-television networks, including AMC, Fuse, IFC and WE -- and Weinstein Co. will co-own a film library intended for TV and home-video distribution. Titles are to be selected by Weinstein Co. and funded by Rainbow.
Weinstein Co. also will be the exclusive home-video distributor for Rainbow's IFC Films division, which distributed "My Big Fat Greek Wedding," and act as the exclusive sales agent for the foreign rights of IFC Films. Rainbow's networks will receive first option for the U.S. TV premieres of films.
"At Miramax, my brother and I learned the power of film libraries and built an 800-title film library," Harvey Weinstein said in a written statement Thursday. "We're going to do that again."
The Weinsteins, after separating from Disney back in March, faced the challenge of raising money for their new film company and enlisted the help of Blackstone Group and Goldman Sachs Group Inc. The duo, who convinced Disney to increase their budget to a sizable $700 million back in 2000, launched a long list of cash cows including "Pulp Fiction," "Chicago" and "Shakespeare in Love" under their Miramax label, which Disney retained under the separation deal. Disney also kept Miramax's film library.
The Weinsteins kept their Dimension Films label, some films in progress and the right to make Dimension sequels, such as "Scary Movie 4." Weinstein Co. is the temporary name the brothers gave their venture following the split with Disney. The brothers agreed to continue to oversee Disney's Miramax Books through September 2007 to complete the publication of books they have initiated.
"IFC is thrilled to be able to work closely with the Weinsteins to expand the distribution of our films around the world," IFC President Jonathan Sehring said in a written statement. "They are providing their years of experience and success, which will no doubt provide our brand and our film titles with even greater visibility and recognition among film fans," Mr. Sehring added.
Representatives from Rainbow Media and Weinstein Co. declined to comment on the financial terms of the deal and whether the companies have any other agreements with each other in the works.
Write to the Online Journal's editors at newseditors@wsj.com.