NEW MERGER

Sun (Auckland), Volume III, Issue 678, 1 June 1929, Page 9 (Supplement)

NEW MERGER

Warners to Combine With United Artists ARTISTS AFFILIATED One of the most important film mergers of recent years is now being discussed by United Artists and Warner Brothers. It is proposed to consolidate the United Artists’ producing units into one great corporation and transfer 50 per cent, of the stock to Warners,

the big talkie producers. At present United Artists function as a number of independent units combined only for distribution purposes under the leadership of Joseph M. Schenck. For example, Edwine Carewe, although a producer under United Artists’ banner, concerns himself

solely with Dolores Del Rio pictures. Herbert Brenon. heads a unit, Samuel Goldwyn heads another, with Ronald Colman and Vilma Banky the chief players on his contract lists. Mary Bickford, Douglas Fairbanks, R e s Ingram, (,'harlie Chaplin, Howard Hughes, D. W. Gl’ilii m, nepry rvmg and Sam Taylor are producers affiliated with United Artists. Actors allied with the organisation include Mary Pickford and Douglas Fairbanks, who are also producers; Norma Talmadge, Gloria Swanson. John Barrymore, Camilla HoTn, Dupe Velez. Lily Damita, Gilbert Roland, Don Alvarado, Louis Wolheim and Valter Byron and many others.

Under the present plan the separate units will merge into a £10,000,000 concern to be known as the United Artists’ Consolidated Corporation, with Joseph M. Schenek directing the destinies o£ the new motion-picture giant. From Schenek comes announcement that Warner Brothers, pioneers in the talking-picture field, are negotiating for the purchase of a half interest in the consolidated concern, a transaction involving at least £-1,000,000 in cash.

The chief reason given for United, Artists’ consolidation is the cut in expenses and the greater efficiency to be gained in producing and exhibiting pictures through the merging of independent producing units, studio corporations, financing company and theatre corporaton, into one vast organisation. The proposed acquisition by Warner Brothers of a half interest in the concern would greatly benefit both cornduplication of picture distributing systems, the maintaining of separato systems of exchanges, that is to say, by the two corporations, an alliance with Warners, Schenek as president and chairman of the board of directors of United Artists and one of the seven owners, will confer with his partners, Mary Pic.kford, Douglas Fairbanks, Charles Chaplin, D. W. Griffith, Gloria Swanson and Samuel Goldwyn.