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.
The latest development marked the end to a long, strange trip to the top for a funky little company that had its first big successes in the early 1970s marketing John Waters's 1972 Pink Flamingos and the camp revival of the 1936 drug-hysteria picture Reefer Madness. New Line hit a new level of mainstream commercial success with the 1984 A Nightmare on Elm Street, which the company built into a powerhouse franchise. By the end of the eighties, New Line had one foot in the art house and one in exploitation/genre movies, a formula that it made work with a lively mix of films such as The Evil Dead, Sid and Nancy, The Hidden, House Party, Teenage Mutant Ninja Turtles, The Player, Glengarry Glen Ross, Menace II Society, The Mask, Dumb and Dumber, Se7en, Boogie Nights, and Magnolia, as well as Austin Powers, Friday, Blade, and Final Destination and the franchises that grew out of them. The studio's biggest gamble, and biggest success, was probably the Lord of the Rings trilogy, a high-stakes commitment that left the company CEOs looking brilliant--at least, until they proceeded to alienate the director Peter Jackson so badly that he become but one of a long line of litigants who filed lawsuits that grew out of controversy about the company's accounting practices and charges that they failed to honor various pledges and legal committments to everyone from bit players in the movies to the heirs of J. R. R. Tolkien. New Line had recently updated its corporate logo to celebrate its fortieth birthday last October 5.