Talent agencies, investors, and even banks now view the Weinstein Company as “toxic,” and are preparing to sever ties with the production firm, according to insiders.
A new report details the turmoil rocking the entertainment industry as a result of the unfolding Weinstein scandal, which could radically alter the landscape in Hollywood and beyond.
One anonymous media executive likened the crisis to “a run on the banks,” explaining, “Banks aren’t going to continue to lend to them. You have agencies saying they will not allow talent to appear in their movies even if they re-brand. The equity is likely to get wiped out.”
There is speculation that the Weinstein Company (TWC) will likely change its name and purge Harvey’s name from credits on its many projects in an effort to cleanse the brand, but the damage could run so deep that the titanic firm valued as highly as $700 million just last year may never recover.
“Agents did not want to be on record, but reactions ranged from not wanting to risk the wrath of clients in the event of more fallout by putting them into TWC projects, and others said that if there was evidence of Weinstein benefiting directly or indirectly in projects, the agencies wanted no part of it,” reports Deadline. “We have heard that some financiers are already poring over the list of plum projects they might pry loose. And agents are looking for outs for their clients on projects that are percolating.”
“One would have to harken back to Fatty Arbuckle to find as sudden and precipitous a fall in Hollywood as what is happening to Weinstein, and numerous agents and executives at studios believe it will be next to impossible to detoxify the remnants of a company that hasn’t even weathered the litigation that is expected to follow Weinstein’s exit from the company he formed with his brother and used as his platform for decades.”
A collapse of TWC could prove disastrous for Hollywood, as it would directly impact projects already in development, a variety of major investments, and even real estate, as TWC is an anchor tenant at Robert De Niro’s Tribeca Film Center.
In an interesting twist, De Niro would not be the only virulently anti-Donald-Trumper directly affected, as TWC has been gearing up for the release of Farenheit 11/9 – a new film/leftist propaganda fest from Michael Moore about President Trump’s devastating election win.
Moore once called Harvey Weinstein “one of the best people to work with” in a 2015 Tweet that has aged very poorly.
Actually Harvey Weinstein is one of the best people to work with in this town. #funfactneverreported
— Michael Moore (@MMFlint) February 23, 2015
“When the primary asset of a company is one individual, they now have to prove they are a going concern,” said one investor. “That primary asset is now their primary liability.”