Construction magnate Ron Tutor's bid to acquire Miramax from Walt Disney Company may be hitting some rough spots.
Disney accepted Tutor (and Los Angeles private equity firm Colony Capital's) $660 million offer to buy Miramax, casting aside a smaller bid by the company's original founders, Bob and Harvey Weinstein.
But now, James Robinson, the founder of Morgan Creek Productions, has backed out of being an investor--pulling as much as $100 million out of the deal. The Los Angeles Times reports that philanthropist Jerome Swartz, whom Tutor was counting on for $25 million to $50 million is pulling out.
Reports are that negotiations between Robinson and Tutor broke down largely over issues of managerial control and the foreign distribution of Miramax's movies. Robinson apparently had expected to be an equal partner with Tutor and run day-to-day operations of Miramax.
Will Tutor try to find some new money? Or try to renegotiate with Disney?
Paging Harvey Weinstein...