Miramax auction: And then there were four - or is that five? (VAR, TW)

By Nancy Tartaglione

According to Variety, Disney is eyeing four bids after closing down its auction of Miramax last week. Those in the mix are said to include Relativity, Lionsgate and some high net-worth individuals. The Wrap, however, says it's now down to five bidders - and Relativity isn't one of them.

Along with Lionsgate, the Web site pegs The Weinstein Co., Platinum Partners (Sam and Tom Gores), Amir Malin - partnered with hedge fund Canyon Partners - and Russian billionaire Len Blavatnik.

Blavatnik, 52 has a personal wealth estimated at $7 billion and is an investor in the Warner Music Group. Not long ago he bought Icon's UK distribution arm. He has already been reported to be in the second round of bidding for MGM, and is also said to be a friend of Harvey Weinstein’s.

According to Variety sources, Disney had pegged an $800 million asking price a month ago and was asking for nonbinding bids of at least $700 million for the library.

The pricetag was floated without an independent evaluation of the library's worth, according to one financial source: "Disney put together a number, but there was no library valuation."

Says Variety, three key issues now underlie the auction:

The near-future expiration of some 25-year license terms built into acquisitions made on the Weinsteins' watch; sequel/remake rights and the fact that Disney doesn't need to sell Miramax, which means it is unlikely to give a discount for a fast deal.

There's also speculation that Lionsgate, given its ongoing woes with activist investor Carl Icahn, may not be a frontrunner. TW notes that Platinum is apparently more likely to partner with - for example - a Lionsgate, than continue to lead the bidding on its own.

Meanwhile, the general malaise of the marketplace is dragging down library sales.

"A library purchase can be seen as an opportunity or a scary proposition," one source who looked into buying Miramax a year ago when Disney's asking price was $1 billion, told Variety. "Will the library's valuation go up or continue to decline? The only new platform I see is the Internet, and we still don't know the value of that. It's a really tough move to make at this time."

Final bids are due by March 19.