Walt Disney Co has been quietly shopping for what remains of its Miramax film unit and has attracted seven to 10 interested bidders, a mergers and acquisitions expert with knowledge of the process said.
The initial discussions indicate a price of more than US$700 million for the Miramax name and its 700-film library, including films like Pulp Fiction and Shakespeare in Love, which is essentially all that remains of the once-mighty art house label, said the person, who declined to be identified because of the confidential nature of the negotiations.
Interest is sharply higher than a year ago, when Disney briefly floated a Miramax sale before reconsidering because of the recession and has been helped by a loosening of the credit markets.
Harvey Weinstein and Bob Weinstein, who founded Miramax in 1979, are not among the bidders — so far. The Weinstein brothers sold Miramax to Disney in 1993 but ran it until 2005, when they left to found Weinstein Co.
A Disney spokeswoman declined to comment.
One potential buyer is Summit Entertainment, the privately owned studio that is awash in cash because of its two Twilight blockbusters. Summit does not have a large library and, despite its success, could use the steady if diminishing DVD and TV-resale income that comes from one. Analysts estimate that the Miramax library generates more than US$300 million in annual DVD and TV revenue, but warn that Disney has never published a number.
A Summit spokesman declined to comment. Deadline.com, the Hollywood blog, reported last week that Summit was looking at Miramax.
Among the interested parties are several private equity groups and at least one other independent studio, the person with knowledge of the matter said on Sunday.
Disney expects to move forward with the more serious bidding inquiries in the coming days, the person said, adding that a sale could come within a few months.
Miramax was more responsible than any company for bringing specialty films to the multiplex masses. Its library includes hits like Chicago, Kill Bill, The Queen, The English Patient and No Country for Old Men. The films in the Miramax library have been nominated for more than 200 Academy Awards.
Disney has wanted to find a new home for the Miramax label for some time as it focuses more intently on big-budget, branded movies. It has spent the last six months paring the division to the bone, announcing in October that it would close Miramax’s offices and lay off about 50 employees.
The 20 or so people that remained were integrated into Walt Disney Studios, which took over Miramax’s functions. Six Miramax films await release, including Last Night, a drama starring Keira Knightley, and The Baster, a romantic comedy starring Jennifer Aniston.
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