ViacomCBS buys minority stake in Miramax
ViacomCBS announced Friday a $375 million deal to acquire a 49% stake in Miramax, the television and movie production company founded by Hollywood producer Harvey Weinstein, from Qatar-based beIN Media Group.
Why it matters: It’s ViacomCBS’s first post-merger deal, and it will strengthen the library and resources of the company’s movie studio, Paramount Pictures.
Viacom will put up about $150 million in cash upfront, along with a commitment to invest $45 million annually over the next 5 years to be used for new film and television productions and working capital, per a press release.
- Paramount Pictures has entered an exclusive production deal and distribution agreement for Miramax's film library.
- beIN will retain a 51% stake in the company. The companies say they will explore other strategic partnership opportunities across content production and distribution, live events and recreation, globally.
- MIRAMAX’s current leadership team will continue to lead the company.
The big picture: Paramount had been struggling as a studio until recently, when it turned a full-year profit for the first time in 3 years.
What’s next: The deal expected to close in the first quarter of 2020.