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Breaking News - End of Line for New Line

From Stacie Hougland: It's the end of New Line as we know it. The studio that brought you the Lord of the Rings trilogy, Austin Powers and the Rush Hour series is no more...not, at least, in its current incarnation. Time Warner announced today it is consolidating its film businesses, Warner Bros. and New Line Cinema, into one company to "enhance our revenue opportunities and drive dramatic cost efficiencies," according to the official letter. (Read: Cut Their Losses.) Although New Line will still operate as a separate filmmaking company, it will work very closely to coordinate its releases with Warner Bros. Co-Chairmen and Co-CEOs Robert Shaye and Michael Lynne are also stepping down from "the House that Freddy built"--New Line's first big hit was A Nightmare on Elm Street.

Now, this news doesn't come as too much of a surprise. New Line took a beating with The Golden Compass--budgeted at $250 million, it made $69 million domestically--last year, and in fact hasn't had a bona fide hit recently besides Hairspray (how many of you saw Over Her Dead Body? Martian Child? Mr. Woodcock? We could go on). Company shareholders have been calling for Shaye's head for a while now, especially after his feud with sacred cow Peter Jackson resulted in a massive lawsuit against New Line this year.

The studio has some 30-plus movies slated to come down the pike over the next few years, including The Hobbit, Shazam! and the Elm Street remake.
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