Genius and The Weinstein Company announced the development on Wednesday [December 7] as part of a restructuring of Genius, which will retain 25% while the Weinsteins retain a 15% stake. The partners meanwhile have renegotiated their distribution deal, which will stay in place until December 31 2010 with a mutual option to extend by one year.
The restructuring will include changes to Genius' cost structure and existing agreements with vendors and content partners. The company is understood to be considering a range of strategic and financial alternatives including a recapitalisation, refinancing and going private.
Three of the Genius' directors appointed by The Weinstein Company have resigned and will be replaced with representatives from Quadrant.
The Weinstein Company co-chairman Bob Weinstein said the restructuring would give the Weinsteins more time to concentrate on their theatrical slate. He added: 'We're happy to have Alan Quasha and his team at Quadrant on board and to be part of this company going forward.'