Time Warner Inc. (NYSE: TWX) is making all sorts of moves to cut costs here and there on a selective basis. The media conglomerate plans to consolidate its movie studios by absorbing New Line Cinema into Time Warner Entertainment.
The move will cut costs and increase profitability, as well as give New Line access to Time Warner's international and digital distribution contracts. If you have been following the transition, this is the first formal unit consolidation restructuring by new CEO Jeff Bewkes in an attempt to boost Time Warner's profitability and ultimately the share price.
New Line has distributed blockbusters such as The Lord of the Rings and has Sex and the City: The Movie and The Hobbit set for release. This move will cause some Hollywood pain initially, but ultimately the need for multiple studios under a company that already is a conglomerate seems unnecessary. New Line will still operate somewhat differently, but as more of a subsidiary.
Time Warner stock was down 16 cents in mid-morning trading to $15.86 in a very weak stock market. The 52-week range is $14.64 to $21.97.
Time Warner consolidates movie studios in cost cutting
Posted Feb 29th 2008 5:16PM by Jon Ogg
Filed under: Time Warner (TWX)
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Reader Comments (Page 1 of 1)
2-29-2008 @ 7:15PM
John Huckleberry said...
Here goes stupid move number one. Sorry Jeff, just calling it as I see it. You're going to depress moral, effect the product in a bad way and leave the rest of Time Warner workers wondering who's next. Bad move to increase stock prices.
2-29-2008 @ 8:14PM
John Huckleberry said...
With the above said and done... What would add value to Time Warner stock? Use all the resources Time Warner has in it's press and publicity departments to make the public aware of everything Time Warner. People just don't know or understand the scope of Time Warner's branding's, divisions, companies, product and productions. Put faces on the names of people at all Time Warner's branding's, divisions, companies, product and productions.
Sell the image, the people, the products, the productions and not business as it's been done before. Let the people who use imagination at all levels, divisions and companies flood the market place with all that is good and positive about Time Warner. If all you do is cut, divide up, restructure and re manage all you are doing is working a puzzle. Time Warner is a entertainment company not a puzzle. If you think it's a puzzle get a new game (job.) Want to know more hire me. Yeah, btw, I'm tough.
John Huckleberry
Hollywood Tonight
3-01-2008 @ 8:58AM
Annie said...
I recently saw Atonement, The Bucket List and No country for Old Men.
Depressing, each and every one. If the studios want to make money they should remember that their audience appreciates a good drama once in a while but movies are escapism; they want to laugh and forget their troubles. NCFOM had ten men in ten minutes slaughtered and then it escalated. You call this a movie? At least American Gangster had a story. NCFOM is the last movie I will see in a movie. If a new one comes on the satellite channel I will buy it otherwise I'll watch TCM.