Hollywood Reporter announced that Time Warner is consolidating New Line Cinema and Warner Bros. Entertainment. New Line will now be operated as a division of Warner Bros. With this merge the two co-chairman/co-ceos of New Line, Robert Shaye and Michael Lynne, will leave the studio, but they will be open to discussing a relationship in the future with the company. After the merger, New Line
will maintain separate development, production, marketing, distribution and business affairs operations. However, it will “closely integrate and coordinate those functions with Warner Bros. to maximize film performance and operating efficiencies, achieve significant cost savings, and improve margins,” TW said.
While details of layoffs and cost savings at NL are still being worked out, sources believe Thursday’s restructuring could over time allow NL to double its earnings.