The house that made a whopping large amount of pesos with LOTR, that started up x-amount of franchises and once distributed John Waters’ films is now being consilidated (another word for: maximizing returns and making tons more money). Over the years New Line Cinema had become more of a studio player – and now will mostly likely return to its indie roots – which I imagine might be the equivalent to what Dimension films is for the Weinsteins. The deal will also mean that international distribution companies won’t be making coin off New Line cinema product anymore. Here is a copy and paste I found on expert forecaster Nikki Finke’s site.
TIME WARNER CONSOLIDATES FILMED ENTERTAINMENT BUSINESSES
New
Line Cinema To Be A Unit Of Warner Bros. Entertainment
NEW YORK, February 28, 2008 – Time Warner Inc. (NYSE: TWX) announced today
the consolidation of its filmed entertainment businesses, Warner Bros.
Entertainment and New Line Cinema. The combination brings together New Line’s
40-year legacy as the world’s most successful and innovative independent film
studio with Warner Bros.’ creative leadership and unparalleled scale and reach
in global distribution and marketing.
As part of the consolidation, New Line will be operated as a unit of Warner
Bros. New Line will maintain separate development, production, marketing,
distribution and business affairs operations, but will closely integrate and
coordinate those functions with Warner Bros. to maximize film performance and
operating efficiencies, achieve significant cost savings, and improve
margins.
In making the announcement, Time Warner’s President and Chief Executive
Officer Jeff Bewkes said: “We are moving quickly to improve our business
performance and financial returns. New Line has built a strong franchise of
cutting-edge entertainment. We can enhance its value by combining it with
Warner Bros. Given the trend toward fewer movie releases, New Line and Warner
Bros. will now have more complementary release slates, with New Line focusing on
genres that have been its strength. With the growing importance of
international revenues, it makes sense for New Line to retain its international
film rights and to exploit them through Warner Bros.’ global distribution
infrastructure. We can also take better advantage of digital distribution
platforms by combining our studios. These changes will enhance our revenue
opportunities and drive dramatic cost efficiencies and higher margins at New
Line.”
New Line’s Co-Chairmen and Co-CEOs Robert Shaye and Michael Lynne have
elected to leave the studio, but are in discussions about possible future
business relationships with the company.
Mr. Bewkes said: “Bob and Michael have a unique partnership that is
noteworthy not only for its stability and longevity, but for its record of
innovation and success. They have guided New Line’s growth from a privately
held art film distributor to the world’s leading independent film studio that is
home to some of the most popular films in entertainment history, including The
Lord of the Rings trilogy, The Mask, Austin Powers, Blade, Rush Hour, Elf,
Wedding Crashers and Hairspray. We thank Bob and Michael for their enduring
contributions to Time Warner and look forward to a continuing working
relationship with them.”
Mr. Shaye and Mr. Lynne said: “New Line has been our respective life’s work
as well as our second family. While we’re sad to be leaving, we’re enormously
proud to have overseen its extraordinary growth and worked with so many
dedicated and talented colleagues. New Line represents innovation, creativity,
and independent success. We hope that the company can continue to be a leader
in creating entertainment that resonates around the world. We will now focus
our efforts on exploring new entrepreneurial opportunities.”
