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...Warner Bros. co-chairmen Robert Daly and Terry Semel were seen in the industry as Canton's sharpest critics. But this month they agreed to pay Arnold Schwarzenegger $25 million to appear as Mr. Freeze, the villain in the next Batman installment. Some executives are complaining that Warner is compounding the cost problem. Daly says the deal makes sense because Schwarzenegger's presence will boost the film's grosses, particularly overseas. Arnold is also taking "a lot less" of the film's gross profits than usual--he generally gets up to 20%--as well as a reduced share in profits...
...including $130 million in reduced wages and benefits. TWA also cut its annual interest payments by $50 million. Incredibly, the airline only recently converted to computers to set fares and manage its inventory of seats to boost revenues for each flight. Notes Brian Harris, airline industry analyst for Lehman Bros.: "TWA had been operating in a 1970s time warp." This backwardness apparently did not apply to safety and aircraft maintenance. Unlike some airlines, TWA didn't outsource its maintenance to cut costs...
...merger will restore Time Warner's mantle as the world's largest media company. Time Warner will be an $11.5 billion behemoth controlling a vast array of content, including Warner Bros. movies and TV shows, Warner Music, cable channels (such as HBO) and magazines (like this one), as well as Turner's cable channels (including CNN, TBS and the Cartoon Network) and mini-movie studios. As the country's second largest cable provider, Time Warner also owns the delivery truck for much of this content...
Over the doubts of Warner Bros. and in a departure from the usual practice with John Grisham movies, director Joel Schumacher cast an unknown as the lead in A Time to Kill. But even before the first ticket has been sold, Matthew McConaughey has become Hollywood's newest golden boy and a familiar face to movie fans...
...friends in Friends, NBC's hit sitcom, are all for one and one for all when it comes to negotiating a new deal for themselves. According to sources close to the show, the stars are telling Warner Bros. that unless the studio accedes to their demands, they won't be back in August to start work on new episodes...