Weinstein Co. Completes Genius Merger24 Jul, 2006 By: Erik Gruenwedel
After multiple delays, Genius Products Monday announced official shareholder approval of the Dec. 5, 2005 merger transaction with The Weinstein Company following a special stockholders meeting July 21.
Under the terms of the deal, Genius Products is 30% owned by Genius and 70% by assorted affiliates of TWC. The board of directors of Genius increased from four to six members with the addition of two TWC executives, Larry Madden, EVP and CFO of TWC, and Irwin Reiter, EVP of accounting and financial reporting of TWC.
The deal affords Genius exclusive U.S. home video distribution rights for virtually all TWC's filmed entertainment and direct-to-video product in addition to ancillary Genius business, which includes the marketing, sales and home video distribution for ESPN, NBC News, Sundance Home Entertainment, Asia Extreme, AMC, Dragon Dynasty and IFC, among others.
“We are delighted to be significant owners of the most exciting home entertainment company in the industry,” said Bob and Harvey Weinstein. “Genius Products is a world-class organization and we are eager to work with management to continue to drive shareholder value.”
“With the closing of The Weinstein Company transaction and the exclusive ESPN distribution agreement, our track record of attracting premium content providers is clearly established, and we are confident Genius' growth will continue for many years to come,” said Stephen Bannon, chairman of Genius.
“We welcome the addition of The Weinstein Company spirit of innovation and creativity and we're confident this transaction will enhance and expand our business and build shareholder value,” said Trevor Drinkwater, Genius CEO.