http://sfgate.com/cgi-bin/article.cgi?f=/news/archive/2005/03/29/state/n153157S32.DTL&type=business (http://sfgate.com/cgi-bin/article.cgi?f=/news/archive/2005/03/29/state/n153157S32.DTL&type=business)

QuikQuote:Miramax co-founders Bob and Harvey Weinstein will leave The Walt Disney Co. in Sept. to launch their own film distribution company, Disney and the Weinsteins said Tuesday.
The two companies will work together after the separation to potentially collaborate on as many as 25 or more projects, including co-productions of sequels to such film franchises as "Spy Kids" and "Scary Movie."

The Walt Disney Company Press Release

The Walt Disney Studios and Bob and Harvey Weinstein Reach Mutual Agreement Concerning Employment Contract

Miramax Co-Chairmen to Remain at Company Thru September 2005

Will Oversee Upcoming Releases While Preparing for Launch of Their New Company


LOS ANGELES, March 29 -- The Walt Disney Studios and Miramax co-chairmen Bob and Harvey Weinstein have reached a mutual agreement concluding the Weinsteins current deal with The Walt Disney Company, it was jointly announced today by Dick Cook, chairman, The Walt Disney Studios and Bob and Harvey Weinstein.

The Weinsteins will remain co-chairs of Miramax on a non-exclusive basis through September 30, 2005. During this period, they will focus their efforts on completing projects currently in production and will oversee the marketing and distribution of Miramax and Dimension films scheduled for release. Cook will announce new management of Miramax Films in July 2005. During a transition period that will last from July through September, the Weinsteins will work with the new Miramax leadership, which will report directly to Cook. The Weinsteins will make no new financial commitments towards the development, acquisition or production of projects on behalf of Miramax.

Bob and Harvey will own and operate a new company, which is currently being developed, and they will immediately begin the production, development and acquisition of new projects for their new venture. Details about the Weinsteins new company, including its name, financial backers and other specifics, will be announced during the next several weeks.

The Walt Disney Studios will retain the name "Miramax Films" and the Miramax and Dimension film libraries, while the Weinsteins will take the Dimension label to their new company.

The Walt Disney Studios and the Weinsteins, through their new company, will continue their relationship by potentially collaborating on as many as 25+ projects including, but not limited to, co-productions of sequels to hit film franchises like "Scary Movie" and "Spy Kids," and by co-financing the production and distribution of original films including "Breaking and Entering" and "The Matador."

An announcement about the future plans for Miramax Books will be made later this week.

"Bob and Harvey are talented creative executives who have brought some of the finest award winning films to the big screen," said Cook in making the announcement. "Through this mutually beneficial arrangement, we will continue our relationship with the Weinsteins and their new company well into the future, while focusing our efforts on Miramax."

"Disney's film library has benefited tremendously from the groundbreaking and critically acclaimed films developed under Harvey and Bob," said Robert A. Iger, president and chief operating officer and CEO-elect, The Walt Disney Company. "Their creative instincts are undeniable, and they have developed a valuable asset for this company. We look forward to future collaborations with them through this newly established relationship."

"Harvey and Bob's unprecedented 12-year association with Disney will go down in the motion picture annals for its unparalleled contributions to independent filmmaking and the entrepreneurial creative spirit they fostered
within a corporate environment," said Michael Eisner, CEO, The Walt Disney Company. "The Weinsteins' passion and enthusiasm for film are infinite and will thrive wherever their vision takes them."

"We are incredibly grateful for the chances we have been given at Disney over the past 12 years. As movie fans, we truly appreciate the unique opportunities we have had to work with some of the greatest talent, both on screen and off, in sharing such a wide range of independent and foreign films and Miramax and Dimension productions with audiences around the world," said Bob and Harvey Weinstein. "We are thankful to Dick Cook for his commitment to making this agreement possible and we appreciate Bob Iger's contributions too. We know that there is no bigger fan of our movies than Michael Eisner and think it was pretty brave of him to give us the ability to make movies like "Hero" and "City of God." We look forward to working with Bob and Dick and everyone else at Disney on projects in the future. We've nurtured Miramax over the past 25 years and are proud of the valuable film library we've built for Disney shareholders."

Since being acquired by The Walt Disney Company in 1993, Miramax Films has received 220 Academy Award nominations, winning 3 Best Pictures and 53 total Oscars. The company received 14 Best Picture nominations for "The Aviator" (2004), "Finding Neverland" (2004), "Chicago" (2002), "Gangs of New York" (2002), "In the Bedroom" (2001), "Chocolat" (2000), "The Cider House Rules" (1999), "Shakespeare In Love" (1998), "Life Is Beautiful" ("La Vita E Bella") (1998), "Good Will Hunting" (1997), "The English Patient" (1996), "Il Postino" ("The Postman") (1995), "Pulp Fiction" (1994), and "The Piano" (1993).

Some of Miramax and Dimension's highest grossing films include "Chicago," "Good Will Hunting," "Pulp Fiction," "Scary Movie," "Scary Movie 3," "Scream," "Scream 3," "Shakespeare in Love," "Spy Kids," and "Spy Kids 3D Game Over."

I'm glad to see they're off to a seemingly amiable split. While it's true the Weinstein's do have a great talent for moviemaking, their style (both personal and what they bring to the screen) are not a good fit for Disney. A company that is not so closely tied to family values will be better able to let them basically run independently, spending the up-front cash to distribute their pictures but then collecting the endless income stream after-the-fact.

Does anyone really think they're going to spend a SECOND after this point on Miramax? That agreement sounds like spin--instead of basically firing them, this lets them down gently--and I fully expect them to devote full attention to building their new venture.

Yeah, I wouldn't expect to see any significant involvement by the Weinsteins starting now.

From what I've read, the deal includes co-financing arrangements for a number of projects that are currently in various stages of production at Miramax or Dimension. At least for a while, it does appear that they will still be working with Disney to some degree.

-Jeff

From Wednesday's Daily Variety article:

The Weinsteins have so far agreed with Disney to potentially collaborate on as many as 25 projects that will be distribbed by the Weinsteins' new unit.