There's been lots of talk behind the scenes regarding trouble with New Line Cinema, who took a massive hit late last year with The Golden Compass, and haven't had much luck at the box office throughout the past year. This afternoon, it was officially announced that New Line will now become part of Warner Bros., with New Line chiefs, Bob Shaye and Michael Lynne, officially stepping down. There are two announcements floating around: One is a press release, and the other is a note to New Line employees from Bob and Michael which just dropped into my inbox.

According to the internal letter, "New Line will maintain its own identity and will continue to produce, market, and distribute movies. But New Line will now do so as part of Warner Bros. and will probably be a much smaller operation than in the past. Time Warner hopes that operating New Line as a unit of Warner Bros. will allow New Line to focus on the creative side of movie-making, while reducing costs and taking advantage of Warner Bros.' distribution systems. The company will be holding group meeting with New Line employees tomorrow in Los Angeles and New York to discuss this announcement, and is committed to letting employees know as soon as possible about how this change affects them individually."

We here at Cinematical have some good friends over at New Line, and we wish them well in their future endeavors. For more on this, read the official press release here, and the internal letter after the jump ...

categories Movies, Cinematical