Warner Bros. ready to absorb New Line

2008-02-29 16:08:16 (GMT) (Caymanmama.com - Entertainment News)

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LOS ANGELES, California (AP) — Time Warner Inc. on Thursday announced that its New Line Cinema Unit would now be absorbed in Warner Bros. Entertainment studio, which was one independent studio which reallocated original films such as “Reefer Madness” and ended up making blockbusters like the trilogy of “The Lord of the Rings.”

The founder of New Line, Robert Shaye along with Michael Lynne, his co-chief executive, took the decision to leave their studio, which is almost 40-year old and also held a discussion regarding the possible business deals in future with conglomerate.

“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,” Lynne and Shaye commented in the joint statement.

Separate marketing departments, production, and separate development will now be maintained by New Line, but its function will be integrated with its novel parent division. This is done so as to reduce costs and increase profitability, said Time Warner.

“This new alignment will help both companies to coordinate film releases as well and thereby let the New Line to take advantage from the Warner Bro.’s digital and international distribution contracts,” said the company.

An example for the lost revenue opportunities, “The Golden Compass” of New Line made $70 million at the domestic level through February 24, and was raked in $261 million abroad that perceived a limited benefit for the studio as its distribution rights had to be sold to many other companies.

The international network of the Warner Bros. will also allow the Time Warner to gather other similar sales directly.

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