That legendary 90-year-old movie producer Saul Zaentz is litigious is nothing new. Today he’s suing Miramax and Disney for breach of contract alleging he hasn’t seen enough profit from the 15-year-old Best Picture Oscar-winner The English Patient. He’s accusing the studios of blatant self-dealing and manipulation and misstating the movie’s revenue by millions in order to enrich itself — but not Zaentz — as well as deceptive and unfair accounting practices in connection with the movie. The lawsuit was filed today by Lavely & Singer’s Marty Singer in Los Angeles Superior Court. But here’s the thing: This isn’t the first time Zaentz has done this. He sued Miramax and Disney over pretty much the same stuff in the same court over the same pic back in 2006. And it was Lavely & Singer who filed that lawsuit, too. (Did they just Xerox today’s complaint?) That first scuffle was dismissed in 2008. In this latest legal battle, Zaentz also is seeking $20 million in damages — same as before. Of course, the Weinsteins owned Miramax when the film was released, but now it’s Disney’s problem because Zaentz claims the Mouse House promised to be good for the dough. Of course, Disney doesn’t own Miramax anymore. What a mess.
An early trailer is making the rounds for Don’t Be Afraid Of The Dark, the remake of the 70s ABC scary telepic that Guillermo del Toro co-wrote and produced. While del Toro made a splash at Comic-Con announcing he’d co-write and produce Haunted Mansion, he was most excited about the …
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.