It's been announced that New Line Cinema is being folded into Warner Bros. Entertainment. (Both studios are subsidiaries of Time Warner. New Line's connection to Time Warner goes back to 1996, when the corporation picked up New Line's parent company, Turner Broadcasting. As Forbes reports, "The decision to merge the two film divisions didn't come as a surprise. Time Warner Chief Executive Jeff Bewkes said during a Feb. 6 conference call that 'there is an obvious question about whether it still makes sense for us to have two completely separate studio infrastructures at Warner and New Line.' In a statement Thursday, Time Warner said that New Line will keep its own development, production, marketing, distribution and business affairs operations, but will coordinate them with Warner Bros. 'to maximize film performance and operating efficiencies, achieve significant cost savings and improve margins.' " It't not yet clear how many jobs will be lost in the downsizing process, but Robert Shaye and Michael Lynne, who co-founded the company forty years ago, and who had been sharing the titles of chairman and chief executive, are both already out the door.
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