Warner eyes cuts, "Watchmen" talks proceed
LOS ANGELES (Reuters) – Warner Bros is considering ways to slash its budget by 10 percent, saving tens of millions of dollars via layoffs or other steps, as the studio nears an expected settlement of a dispute with a rival house over its upcoming "Watchmen" film.
Warner joins rivals from Sony Corp's Sony Pictures to Walt Disney Co in trying to offset falling film and flat DVD revenues in a rocky U.S. economy.
"No decisions have been made," said a Warner Bros spokesman regarding the cost cuts, which are widely expected to result in an unspecified number of layoffs at the studio, which released the blockbuster Batman movie, "The Dark Knight."
Warner Bros is owned by Time Warner Inc, which last week projected a loss for the year, compared with a previous forecast of earnings of $1.04 to $1.07 per share.
Meanwhile, another drama continues to unfold with Warner's upcoming high-profile release of "Watchmen," which is the focus of a copyright infringement battle between Warner and News Corp's Twentieth Century Fox.
The two studios began negotiating last week and are expected to announce a settlement soon, enabling Warner to release the film in March as scheduled.
Both Fox and Warner said on Tuesday settlement talks were continuing, with one studio executive describing them as "fruitful."
Warner Bros produced the movie based on a 1980s comic book series by Alan Moore and Dave Gibbons about superheroes operating under the specter of nuclear annihilation.
But Fox, which acquired the rights to the "Watchmen" story in 1986, claims it has a continuing stake in the film, and U.S. District Judge Gary Feess last month ruled that the studio owned "at the very least, a distribution right" in the film.
Because of the settlement talks, Feess -- presiding over the copyright dispute -- delayed a decision on Friday on whether or not to move up a January 20 hearing.
Warner's filmed entertainment group's revenue in the third quarter, which ended in September, fell 9 percent to $2.88 billion. The expected cost cuts at the studio falls in line with similar actions at various other entertainment companies.
The film studio, which produced the hit "The Dark Knight," cut production last year and streamlined its operations by eliminating various units like Warner Independent and absorbing New Line Cinema.
Jackie Chan circles "Karate Kid" remake
LOS ANGELES (Hollywood Reporter) – Jackie Chan soon could be mentoring a karate kid.
The action hero is in negotiations to star in Columbia's remake of "The Karate Kid." He would take on the role of mentor Mr. Miyagi, made famous by Pat Morita in the original franchise.
Jaden Smith, son of actor Will Smith, would play Miyagi's young protege, a role originally played by Ralph Macchio. The studio also has signed Harald Zwart ("Agent Cody Banks") to direct the picture, which possibly will begin shooting this year in Beijing.
Like the original, the movie will examine the relationship between a martial arts expert and a boy who is picked on by bullies.
Will Smith's Overbrook Entertainment is producing along with the original film's producer Jerry Weintraub. The setting will be relocated from the United States to China.
Chan, who next appears in the action-comedy "The Spy Next Door," has massive appeal overseas, which undoubtedly appealed to Columbia. His "Rush Hour" franchise with Chris Tucker has earned about $750 million worldwide.