Los Angeles - Rarely are delicate contractual negotiations potentially worth millions of dollars conducted in public. Except in Hollywood.
Miramax, which virtually created the independent film movement, is having a public spat with parent Walt Disney over its future.
The firms are in sticky contractual talks with Miramax founders Bob and Harvey Weinstein. Harvey is chief executive and Bob co-chairman.
Their current deal expires in 2009, but an option in the contract allows Disney to renegotiate the relationship in 2005.
The relationship between Disney and Miramax has been intermittently testy since Disney acquired the studio 11 years ago.
The Weinsteins have enjoyed wide latitude over which films to make and Disney has only occasionally vetoed a decision, such as the distribution of Kevin Smith's film Dogma, which raised the ire of Catholic groups. It was ultimately distributed by Lions Gate.
The latest blow-up is over the Michael Moore documentary Fahrenheit 9/11, which was funded in part by Miramax.
Disney chief executive Michael Eisner told Miramax last year that Disney would not distribute the film, which is highly critical of President George W Bush.
But that did not stop Moore last month from decrying Disney's decision, suggesting it was an attempt to avoid angering Republican leaders and jeopardising tax breaks Disney gets on its theme parks in Florida, whose governor is Bush's brother, Jeb.
Disney sold the film to the Weinsteins for about $6 million (R39 million). They formed a separate company and reached a deal to distribute Fahrenheit 9/11 with Lions Gate and IFC Films.
At issue, according to two people familiar with the talks, is Disney's desire to pay the brothers less money and to impose caps on exploding budgets at Miramax, which made its reputation on marketing small, inexpensive films such as Shakespeare in Love and Life is Beautiful, which went on to win Oscars.
Miramax has been tackling larger and more expensive film projects, such as Cold Mountain, which cost $80 million to make.
Last week, Eisner said Disney had no plans to sell Miramax. But the studio had been unprofitable in three of the past five years.
But Miramax spokesperson Matthew Hiltzik said the studio was making money. "If Disney thinks Miramax is so unprofitable, Bob and Harvey would be happy to buy it back."
And the worth of Miramax, if the creative Weinsteins walk away, would be questionable.