Colony had moved to offer “an immediate cash injection” after TWC co-founder Harvey Weinstein became the centre of sexual harassment and rape allegations.
However, The New York Times reported Colony has pulled out of the agreement, sending TWC spiraling towards bankruptcy.
The cash infusion would have helped to stabilise TWC’s film and television projects, all of which are under threat as new allegations over Weinstein’s actions emerge almost daily.
The NYT and LA Times both reported there are as many as 20 other potential buyers of TWC’s assets if Colony decides to walk away completely.
Colony’s billionaire chief, Tom Barrack, has called for TWC to cut all ties with Weinstein, who has been removed from the board.
Barrack told Bloomberg TWC was “a patient that’s dying on the table”, adding: “You need to revive them to get them to breathe first.”
TWC produces TV series such as Project Runway, War and Peace and the upcoming Les Miserables, though Weinstein has been removed as an executive producer from the latter’s credits.
Other upcoming TWC shows include Amazon’s Matthew Weiner series The Romanoffs, Paramount Network’s Yellowstone and History’s military-themed drama Six.
Weinstein is believed to own 23% of TWC.
Colony Capital was the owner of an owner of another Weinstein-founded studio, Miramax, before it was sold to BeIN Media Group in March last year.
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26 April 2018 @ 12:15:00 UTC