Colony did not want a cash infusion to benefit Harvey Weinstein, who retains an ownership stake, the source said, adding that the Weinstein Co. resisted Colony’s desire for a fund to compensate victims.
This information follows the continued fallout for Weinstein as he was voted out of the Television Academy on Monday night amid swirling allegations of sexual misconduct.
"The Television Academy’s governance has voted to expel Harvey Weinstein from the academy for life," the organization told ABC News via statement. "The academy supports those speaking out against harassment in all forms and stands behind those who have been affected by this issue ... We have been in contact with leaders across the industry and share with them a deep sense of responsibility to provide clear workplace benchmarks reflecting decency and respect."
The statement from the organization that hosts the Emmy Awards added, "As a result, we are expediting an already-begun detailed review and revision of our Television Academy membership codes of conduct. We are determined to play a role in protecting all television professionals from predatory harassment, ensuring they are able to practice their craft in a safe environment.”
There are also open investigations into allegations of rape against Weinstein.
New York City Police Department Chief of Detectives Bob Boyce said last week that there is not yet enough information to seek an arrest warrant, though "we have an actual case" and possibly probable cause to arrest Weinstein.
Through his spokeswoman, Weinstein has denied all accusations of nonconsensual sex.
"Mr. Weinstein has further confirmed that there were never any acts of retaliation against any women for refusing his advances. Mr. Weinstein obviously can’t speak to anonymous allegations, but with respect to any women who have made allegations on the record, Mr. Weinstein believes that all of these relationships were consensual," reads the full statement from Weinstein's spokesperson. "Mr. Weinstein has begun counseling, has listened to the community and is pursuing a better path. Mr. Weinstein is hoping that, if he makes enough progress, he will be given a second chance.”
Representatives for Harvey Weinstein and the Weinstein Co. did not immediately respond to ABC News' request for comment. Colony declined to comment.
ABC News' Sabina Ghebremedhin and Lesley Messer contributed to this report.