Warner Bros. confirmed Tuesday that the studio and Arnon Milchan’s New Regency Prods. have been unable to come to terms on a new agreement (Daily Variety, July 14).
In a brief written statement, WB acknowledged that it had allowed its exclusive negotiation period with New Regency to expire.
“The terms of the equity investment that New Regency has been seeking simply exceeds what Warner Bros. is willing to pay,” the statement said.
Regency, which has made more than 50 pictures at WB, including “JFK,” “The Client” “A Time to Kill” and “Tin Cup,” is said to be looking for an equity investment of about $200 million from a studio partner.
Regency execs could not be reached for comment Tuesday, but sources said Milchan has had talks with Paramount Pictures and Universal Studios execs, and is expected to approach other studios.
Regency reportedly wants to raise cash to continue its expansion into areas other than film production. Milchan previously has said he hopes the company will fully finance more of its pictures and eventually up its output to 12 films per year.
WB’s seven-year relationship with Regency will extend to films going into production through the end of June 1998.
Among those already in the pipeline are “L.A. Confidential,” “The Devil’s Advocate,” starring Al Pacino and Keanu Reeves, “City of Angels” and “The Man Who Knew Too Little.”
In addition to recent forays into music and TV production, Regency’s parent company, Monarchy, last year bought a minority stake in German athletic shoe manufacturer Puma.
In 1996, the company attracted investments from Germany’s Kirsch Group and South Korea’s Samsung.
contributor:Anita M. Busch and Chris Petrikin