By Peter Henderson and Bob Tourtellotte
LOS ANGELES (Reuters) - Miramax founders Bob and Harvey Weinstein are at odds with Walt Disney Co. over issues including money and control of the Oscar-winning studio they run for Disney, people familiar with the discussions said on Wednesday.
But talks to renew their contract, which expires in 2005, are continuing despite the famously fractious relationship between Disney Chief Executive Michael Eisner and the Weinsteins, who have earned fame and fortune with films like "Chicago" and their high-profile Oscar campaigns, said the Weinsteins' Los Angeles lawyer, Bert Fields.
"I would not characterize them (the talks) as near a breakdown, although a breakdown is always a possibility," Fields told Reuters. "You are talking about one organization and two individuals who are not afraid of a fight."
But Fields added that, currently, neither side was considering a deadline.
Negotiations to renew the Weinsteins' contract to continue running Miramax have been ongoing for over a year and disagreements on compensation, autonomy and film selection have been major issues rankling the Weinsteins.
The loss of the Weinsteins or Miramax, which produced about 40 percent of Disney's live-action features last year and an estimated $200 million in profit, would be a major problem for Eisner, especially after Disney's break with partner Pixar Animation Studios Inc., announced earlier this year.
Disney has an option to renew the contract for four years on terms that have been set, but Disney and Eisner are asking the brothers to take less money. The brothers, who sold Miramax to Disney in 1993, are unwilling to budge, one source said.
NEARING "FAHRENHEIT" DEAL
Show business newspaper Daily Variety on Wednesday reported that the Weinsteins were out looking for sources to fund a new company they might start if contract talks failed, but several sources said the pair are not yet ready to call it quits.
Variety also reported that the Weinsteins were lining up investors, including Brian Roberts, chief of former Disney suitor Comcast Corp., in case talks with Disney fell through.
But two sources, including one familiar with Comcast, denied that any such discussions were taking place
Miramax spokesman Matthew Hiltzik declined to comment on the report, but said the Weinsteins hoped to reach a friendly deal.
"This has been a successful and profitable relationship for Miramax and Disney. We look forward to an amicable resolution in the near future," he said.
Meanwhile, Disney and Miramax have neared an agreement on the distribution of Michael Moore's controversial documentary, "Fahrenheit 9/11," about the September 2001 attacks on the United States and the Bush White House's response.
The Moore documentary, which will premiere at the Cannes film festival this month, was financed by Miramax, but Disney had previously declined to distribute it.
A Miramax spokesman late Wednesday said Disney had agreed to sell the rights to the film to the Weinsteins, but a Disney spokeswoman characterized the parties as still being in talks.
"We are very happy Disney has agreed to sell 'Fahrenheit 9/11' to Bob and Harvey," Hiltzik said in a statement. "Bob and Harvey are providing Disney a term sheet based on the deal previously done on 'Dogma."'
Hiltzik added that the Weinsteins "look forward to promptly completing this transaction."
"Dogma" is a 1999 Miramax film that questioned Catholic doctrine. After Disney refused to release it, the Weinsteins bought the rights and a third party distributed the film.
