I couldn’t agree more with a Disney insider who …
Former Disney CFO Richard Nanula Now Leading Ron Tutor’s Miramax Negotiations; “Bullet Train” Deal Could Close In A Week; Disney May Get Its $700M Asking Price; Harvey Weinstein Threatening Lawsuit
EXCLUSIVE – UPDATED FROM 8:30 AM: Forget the bizarre involvement of David Bergstein, and Morgan Creek’s James Robinson, and even Rob Lowe. (I know, I know… I’ve learned Lowe may pull in Arnold Schwarzenegger post-November.) More on them in a minute. But they’re just the side show. Instead, I can report that, 5 days ago, Santa Monica-based Colony Capital, the private international investment firm which currently has $30 billion of assets under its management, was brought in by construction magnate Ron Tutor to help him buy Miramax from Disney. The reason? Because two years ago, Colony Capital president Tom Barrack hired 12-year Disney popular executive and former CFO Richard Nanula who’s now leading the Tutor negotiations with the Mouse House point man on the Miramax sale, Kevin Mayer, who’s EVP for Disney’s Corporate Strategy in the Business Development and Technology Group.
So, for the past five days, Nanula has organized a team of “25 guys working on it 24 hours a day” to get the deal done “like a bullet train”, I’ve learned — maybe as soon as next week. My insiders tell me that Disney could get very near to the $700 million price it’s recently wanted for Miramax — a big raise from the $625M, maybe even $650M max, which the Weinstein brothers/Ron Burkle/Fortress-Colbeck partnership seemed ready to pay until talks broke down. The reason is that Nanula and his team have now confirmed from due diligence that Miramax is sitting on a lot of cash, as much as $300M in receivables. That’s more than even the Weinstein partnership told me was out there.
Meanwhile, I’ve learned that Harvey is a Barrack pal, and the Weinstein bro is spitting mad that Tutor now looks to snag Miramax with Colony Capital’s help. “Harvey is very agitated,” an insider tells me. “He’s threatening litigation everywhere.” That’s vintage Harv: when he loses, he sues. Of course, the Weinstein brothers wanted to reclaim their former company because of its sentimental value: it’s named after their parents, Miriam and Max. To that end, I’ve previously reported how Harvey privately is warning to screw over anyone even thinking of buying Miramax. Under their exit deal in 2005, the Weinstein bros were able to retain a hold over sequel or reboot rights to films like Scream, Spy Kids and some other Dimension titles. Harv, in his inimitable way, has said he’ll do what he can to make developing those projects a nightmare.
Because the Tutor group has signed a non-disclosure agreement and entered into an exclusive negotiating period with Disney, no one is publicly commenting on anything. From Disney’s POV, it’s “still negotiating” with the Tutor group. But its comfort level has vastly improved now that Nanula has taken charge. The Harvard alum was the youngest CFO of a Fortune 500 company when he took the fiscal reins of the $22B corporation. He left in 1998 to become president and CEO of Starwood Hotels & Resorts to work for his best friend Barry Sternlicht. Then Barrack snatched him up 2 years ago. Barrack, too, has tangential Disney ties. He worked with Robert Bass, one of the Texas billionaire Bass brothers whose 1983 investment rescued the Hollywood studio.
Meanwhile, on Nanula’s team is also Justin Chang whom Barrack hired in April as a principal responsible for extending the Colony brand into complementary areas. Chang most recently served as a partner of TPG Capital, the international private investment firm which took a bath on MGM.
I’ve learned that Tutor first approached Barrack last week “because he was queasy about the existing guys he had,” an insider tells me. “especially about David and the baggage he brings.” Before Tutor brought in Colony Capital, he was being advised by two of Hollywood’s most controversial and disliked figures: not just troubled film financier/distributor David Bergstein, whose film companies this year were placed in involuntary bankruptcy; but also his good friend, Morgan Creek’s James Robinson whose company has a mediocre track record. I understand that both men are being pushed aside now.
I’ve confirmed that Tom Barrack, president of California-based Colony Capital, is putting together a $500M media fund with of all people TV star Rob Lowe and a couple of other investors. Barrack, whose real estate investment firm co-owns Michael Jackson’s Neverland ranch and stepped in to bail out photographer Annie …
EXCLUSIVE: The following email was sent this month by the Screen Actors Guild to David Bergstein, the owner of Capitol Films, whose financial meltdown has been crushing indie after indie while he reportedly was lounging on a yacht during the Cannes Film Festival. It confirms all my recent reporting:
To: David Bergstein