LOS ANGELES, Feb. 28 (UPI) -- Hollywood's New Line Cinema is being absorbed into the Warner Brothers division of Time Warner's Warner Bros., a published report said Thursday.
New Line founder Bob Shaye, and co-Chairman and co-Chief Executive Officer Michael Lynne are leaving the company, and it is unclear how many people will lose their jobs because of the merger, the Los Angeles Times said.
"We are moving quickly to improve our business performance and financial returns," said Time Warner Chief Executive Jeff Bewkes in a statement. "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."
Bewkes said that, given "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."
New Line had such blockbuster hits as "Lord of the Rings," "Austin Powers" and "Rush Hour," but also misfired recently with "Snakes on a Plane" and "Rendition."
