When you think of The Weinstein Co., what’s the first thing that comes to mind? Most likely the allegations of Harvey Weinstein’s egregious misbehavior toward women.
What about the company’s dire finances, its seemingly star-crossed efforts to sell itself, and its possible bankruptcy? Probably not as much because they’re not as sexy.
But the financial drama lends itself more to strategic communications and maneuvering.
With so much at stake, these questions loom large: Do you really mean what you say? Is it a ploy? How can you give yourself an edge?
Let’s look at a few of the twists and turns. Consider the shifting calculations along the way.
Shortly after the allegations against Harvey began surfacing and he was forced out of the company, it became clear the studio was teetering. A sale or bankruptcy seemed inescapable.
At that point, the company needed to put its bravest face forward to keep its options open.
Then it got weird.
Talks with potential buyers were winnowed to one, and a deal seemed imminent. But New York’s attorney general injected himself, demanding some of the purchase price go to victims of sexual misbehavior rather than shareholders. The sale stalled.
The deal soon got back on track, albeit briefly. In late February, the Weinstein board abruptly announced the sale was off, and bankruptcy appeared as the only option. Each side blamed the other.
Was that bankruptcy threat real? Or was it a negotiating ploy to create leverage to wring more from the buyer?
The smart money bet it was a ploy. And it worked. A few days later, the deal was back on. Until it wasn’t.
After a few more days, the buyer backed out again. The official explanation was opaque. But according to ubiquitous “sources who asked to remain anonymous,” the buyer discovered $50 million more in liabilities the company failed to disclose.
Which begs the question: Who’s playing whom? Was that $50 million tidbit unofficially leaked by the buyer to justify its action and give it leverage to force the company to lower the price?
The moral: Negotiations don’t take place only at the bargaining table. Sometimes the most effective strategy is what you say and do publicly. The ultimate test is, Who blinks first.
To learn about communicating during a bankruptcy, read Bankruptcy in a House of Worship in The Bankruptcy Strategist.
If you don’t already subscribe, please sign up for our blog, Insights on High-Stakes PR.
You can reach Roger Gillott and Eden Gillott directly at 310-396-8696.
Check out A Board Member’s Guide to Crisis PR and A Lawyer’s Guide to Crisis PR (Second Edition) on Amazon.
Gillott Communications is a Los Angeles-based public relations firm that specializes in high-stakes Crisis & Reputation Management with more than 50 years of expertise in strategic communications, corporate public relations, and working with the media.
Follow us on Instagram and LinkedIn where we share amazing tips on how to protect your reputation and mitigate damage during a crisis.