Last week, Screen Rant wistfully reported the death of Miramax Films. The studio, which was founded by Harvey and Bob Weinstein in 1979, led a charmed existence for many years as it turned out countless independently produced hits (Clerks, Pulp Fiction, and Trainspotting just to name a few). In the past few years, however, the Disney-owned company had fallen on hard times and, apparently, wasn’t worth the investment anymore.
So, how much is Miramax worth? According to a recent article in The New York Times, Disney is currently shopping the company for the great value of approximately $700 million. For your purchase, you get the Miramax name, as well as control of the company’s 700-film library (which comprises over 200 Academy Award nominations). Sounds like a bargain to me! Now, where’s my wallet…
In all seriousness though, $700 million for Miramax doesn’t seem like a terrible investment. While Disney has never released official numbers on its profit margins from Miramax films, the Times article states that “analysts estimate that the Miramax library generates more than $300 million in annual DVD and television revenue.” Assuming those numbers are accurate (though a nagging feeling tells me they might be less) who wouldn’t be interested in acquiring Miramax? Early speculation on some of the potential buyers includes Summit Entertainment, as well as “several private equity groups and at least one other independent studio.”
One sticking point in the eventual sale of Miramax is what will happen to the studio’s remaining six releases, including the Keira Knightley film Last Night. While it’s more than likely that Disney will release some or all of them, it’s not clear when they will hit theaters, or how much marketing support they will receive.
What do you think? Is $700 million a fair price for the studio that practically owned independent film throughout the 1990s and early 2000s? Do you have any multimillionaire friends who might be interested in going in on this purchase with me?
Source: The New York Times