ViacomCBS to pay $375M for 49% stake in Miramax

Media company ViacomCBS Inc said on Friday it would take a 49% stake in film studio Miramax, owned by Qatar’s BeIN Media Group, for $375 million.

Miramax, founded in 1979 by Bob and Harvey Weinstein, is the producer behind cult movies such as ‘Pulp Fiction’ and owns the rights to hundreds of Hollywood films including ‘Bridget Jones’ Diary’ and ‘The English Patient’.

ViacomCBS said the deal includes upfront cash payment of about $150 million, along with a commitment to invest $45 million annually over the next five years, which will be used for new film and television productions, as well as for working capital.

It comes only weeks after the closure of the long-discussed Viacom-CBS merger. 

Sherri Redstone and President and CEO of Viacom Robert M. Bakish pose as ViacomCBS Inc. rings the opening bell at NASDAQ on December 5 on the combined company’s first day

CBS and Viacom, both owned by the Redstone family, began trading as a combined company on December 5.

Paramount Pictures, a Viacom unit, will have exclusive distribution rights to Miramax’s library, which will benefit from Paramount’s marketing and distribution, the companies said in a news release.

The agreement also gives Paramount authority to develop, finance and distribute new film and television productions based on Miramax intellectual property and envisions cofinancing between the companies.

‘Miramax is a renowned global studio, responsible for some of the most iconic films of the last three decades, including ‘Pulp Fiction,’ ‘Good Will Hunting,’ ‘Kill Bill’ and more,’ said ViacomCBS Chief Executive Bob Bakish.

‘This partnership with Bein will be a unique opportunity to gain access to a valuable library, deepening our already substantial pool of (intellectual property) at a time when demand for premium content is only accelerating.’

Miramax, founded in 1979 by Bob and Harvey Weinstein, is the producer behind cult movies such as ‘Pulp Fiction’ (above)

ViacomCBS will pay an upfront cash amount of $150 million, along with a commitment to invest $45 million annually over the next five years on new film and television productions.

Founded in 1979 by Harvey and Bob Weinstein, Miramax changed hands a number of times before Bein Group purchased the assets in March 2016 from a consortium that included Qatar Investment Authority and Colony Capital.

Weinstein’s career collapsed in October 2017 amid a torrent of allegations from dozens of actresses and former employees for offenses ranging from sexual harassment to rape in a scandal that helped launch the #MeToo movement.

He is scheduled to face a January trial in New York for rape and forcibly performing oral sex on a woman.