Weinsteins Sign Distribution Deal With Genius Products

Miramax Films co-founders Bob and Harvey Weinstein have linked up with a little-known San Diego County video distributor to release their films on DVD in the U.S.

The brothers’ recently formed Weinstein Co. will own 70% of the new joint venture, Genius Products, with its publicly traded parent Genius Products Inc. retaining the remaining third, according to an announcement Monday.

Solana Beach-based Genius Products has never distributed videos for major movie releases. It has concentrated on low-cost specialty films, TV shows and children’s programs such as Baby Genius.

The Weinsteins have produced and distributed such major films as “Chicago,” “Gangs of New York,” “Shakespeare in Love” and “The English Patient.”

The move was unexpected, given that the Weinsteins had aggressively sought a video distribution deal with a major studio after their split this year with Walt Disney Co.

“What this deal does is give us direct power to release our movies to retailers,” Bob Weinstein said.

Genius Products is run by a group of former Warner Home Video executives, including Trevor Drinkwater, who will oversee the operation as president. Former Warner Home Video chief Warren Lieberfarb will serve as a special consultant to Weinstein Co. as well as a liaison with Genius.

Genius Products Chairman Stephen Bannon, a former Goldman, Sachs & Co. investment banker, said the deal gave the company added credibility with its retail partners. He said it also allowed the Weinsteins to forge their own direct relationships with major retailers such as Wal-Mart Stores Inc., Best Buy Inc. and Target Inc. that dominate DVD sales.

“We’re the runt of the litter, but we offer you control of your destiny at retail,” Bannon recalled telling the Weinsteins when pitching them on the arrangement.

Genius agreed to put all of its assets into the venture with the Weinsteins, who have the right to convert their stake into 70% of the outstanding common stock of the public parent.

The venture anticipates releasing 20 new theatrical films and additional direct-to-video and library titles a year, beginning in March with the Weinstein’s current release “Derailed,” starring Clive Owen and Jennifer Aniston.