Walt Disney Company has struck a deal to sell Miramax, the studio behind such films as “Trainspotting” and “No Country for Old Men,” for more than US$660M to a group that includes construction magnate Ron Tutor and investment firm Colony Capital LLC. Disney bought Miramax 17 yrs ago for US$80M

The purchase price is about 4 times Miramax’s cash flow, and about half the purchase price is covered by receivables, according to a person close to the transaction..

The deal marks the close of a long sought sale that attracted several bidders, including the Weinstein brothers, who founded the studio.

The new owners will focus on maximizing the value of Miramax’s library, a source familiar with the situation said. No production operations exist at this time and there are no current production plans, the source said.

The sale underscores Disney’s plans to focus its film resources on bigger film properties such as “Pirates of the Caribbean” and exploit them across various platforms.

The sale to the group Filmyard Holdings, which comprises Tutor, Colony Capital and other partners, includes rights in more than 700 Miramax movie titles, including Academy Award winners such as “Chicago” and “Shakespeare in Love,” Disney said.

Tutor and Colony declined comment on details of the deal or future plans.—Paul A. Ebeling, Jnr. www.livetradingnews.com

Posted by Shayne Heffernan on Jul 31st, 2010and filed underEquities, Latest News, Markets, USA.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site