Weinstein Co. Names Lantern Capital as Top Bidder for Assets

May 2, 2018 Kristin Brzoznowski Top Stories
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The Dallas-based private-equity firm Lantern Capital Partners has emerged as the highest bidder for the assets of The Weinstein Company (TWC).

Lantern has reportedly agreed to pay $310 million cash for the TV and film studio and assume $115 million in its liabilities. TWC said in a statement that no other bid offered as much value to the estate as the Lantern bid, which was also the debtors’ “stalking-horse bid” and was negotiated with input from the Office of the New York Attorney General.

“Lantern’s bid clearly achieves the highest and best value for the estate and its creditors,” said TWC board member Ivona Smith. “We look forward to working with Lantern to close the transaction and consummate the going concern sale.”

Andy Mitchell and  Milos Brajovic, co-founders of Lantern Entertainment, an affiliate of Lantern Capital Partners, said: “We are honored by the board’s recognition and acceptance of Lantern’s planned acquisition. Lantern looks forward to continuing our work with the constituents involved in this court-supervised transaction. Furthermore, we appreciate the significant support from employees, business partners, creative talent and numerous industry leaders as we set out to launch this new company. Lantern Entertainment remains committed to providing premier content with a diverse workforce in a safe environment founded on a culture of respect and creativity.”

Any sale of TWC assets must be approved by a bankruptcy judge.

New York State Attorney General Eric Schneiderman issued an open letter asking “that all stakeholders in the sale process use it as an opportunity to help survivors of past misconduct and ensure that current workers are protected.

“Based on prior communications with many of you, my staff and I believe that making and supporting enhanced bids in the auction will advance these objectives to the benefit of survivors of the misconduct, the business and the bankruptcy estates, and the film and television community as a whole,” he continued. “Industry participants who are reluctant to deal with TWC because of past misconduct may change this stance toward an acquiring company that shows its commitment to making things right. The first—and in our view, best—way to show that commitment is now, through proposal and acceptance of enhanced bids that provide support for those harmed by Harvey Weinstein and the company he founded and led, as well as meaningful protections for future employees and others retained by the post-sale business.”