Movie team announces plans to leave

Warner Bros.

The Associated Press

LOS ANGELES -- The curtain will close on the co-leaders of Warner Bros.' movie, television and music divisions, ending one of Hollywood's longest-running success stories and leaving a huge management void for parent Time WarnerInc.

Robert A. Daly and Terry Semel, chairmen and co-chief executives of Warner Bros. and Warner Music Group, said Thursday they will stay until Dec. 31, when their current contracts expire.

Both men said they wanted to pursue new ventures, but declined in an interview to elaborate.

"For some months now, we have been giving careful thought to the possibility of pursuing new professional challenges and opportunities," they said in a joint statement. "We concluded that now is the right time for us to move on."

They are leaving at a time when Time Warner appears to be on a roll, with recent box office successes of films such as "The Matrix" and the "Austin Powers" sequel.

Stanley Kubrick's final film, "Eyes Wide Shut," debuts Friday and is expected to do well. Earnings for Time Warner were up 8 percent in the second quarter.

Their partnership is unique in the broad scope of their responsibilities, which include movies, television and music, and that they operate as equals.

When the two started with the company 20 years ago, the film and television group had revenues of less than $1 billion. By the end of 1998, it reported revenues of approximately $6 billion. The film and television division and Warner Music Group reported combined revenues of an estimated $10 billion in 1998.

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