By Ben Fritz
Because movies take so long to complete and release, running a
Hollywood studio typically means planning two to three years into
the future.
But just one year from now, Twentieth Century Fox may no longer
exist.
That makes it an awkward time for the 2,300 employees of the
83-year-old studio behind "Deadpool 2" and "The Greatest Showman"
as they wait to see if Walt Disney Co. receives the foreign
regulatory approvals it needs to complete its purchase of most of
the assets of parent company 21st Century Fox Inc., which could
happen next year.
Unlike its sibling television studio, Fox's movie studio is
expected to be significantly downsized once the deal is complete.
Disney will likely take over Fox's two biggest film franchises,
Avatar and the X-Men, and scale back production of costly movies
that don't fit its family-friendly, franchise-focused formula,
people close to both companies have said.
Until the deal is done, however, Fox is obligated to keep acting
as if it will survive, people who work at the studio say, which
means making movies and developing new ideas with no certainty as
to what Disney will end up doing with them.
"We're doing the only thing we know how to do, which is put one
foot in front of another," said one executive at the studio.
Only adding to the pressure is the reality that some employees
are looking for other jobs. Some fear an exodus could start in late
August, after the company hands out bonuses for the fiscal year
that ended in June.
To make sure Fox can continue operating smoothly, Chief
Executive Stacey Snider has extended the contracts of many
executives as long as company policy allows, typically through
2021, said people close to the studio.
Employees in departments that Disney is almost certain to slash,
such as theatrical distribution and marketing, have been a priority
so they don't defect too soon, one of the people said.
Ms. Snider herself is widely expected to leave following the
acquisition, as there is unlikely to be a place for her within the
new parent company.
Fox has over the past few months remained busy starting work on
movies that it plans to release over the next two years. Some, such
as an adaptation of Jack London's novel "Call of the Wild" and of a
comic book one studio executive described as "'Game of Thrones'
with mice," which both mix live action with computer generated
effects, could be easy fits for Disney.
Others, such a historical drama about the competition between
auto designers from Ferrari and Ford in the 1960s and a trio of
young-adult horror movies intended to be released in theaters
within a three-month period, are difficult to imagine coming from
the studio behind "Avengers" and "Christopher Robin."
Disney will release all of Fox's movies that are complete or in
production at the time of the acquisition, said a person with
knowledge of its plans.
It's less certain what will happen to films still in development
at the time of the takeover. That has made it more difficult for
Fox to buy new projects in recent months, said people who work with
the studio.
Fox has made new deals this year, including for a film based on
the board game "Clue" to be produced by Ryan Reynolds and a new
musical from "Wicked" composer Stephen Schwartz. It recently won a
bidding war against other studios for a movie about a former cop
who manipulated the McDonald's Monopoly game. Ben Affleck is slated
to direct the movie, with Matt Damon in the starring role.
But some agents and producers are wary of working with Fox given
its precarious future. The team behind "Red Notice," an action
script with "Jumanji" and "Fast and Furious" star Dwayne Johnson
attached that sparked a bidding war in February, didn't take the
potential movie to Fox, said a person close to the sale
process.
"People are making an effort to include [Fox] out of respect,
but it's not anyone's first choice because you don't know what the
studio is going to be," said one movie agent.
It's unclear whether Disney will maintain the Fox movie brand
and continue to produce new films under it following the
acquisition.
Two Fox movie divisions are likely to survive, though. Disney
CEO Robert Iger has publicly touted Fox Searchlight, which makes
"prestige" films like last year's best picture Oscar winner "The
Shape of Water" and Fox 2000, which specializes in literary
adaptations such as the teen coming-out story "Love, Simon," which
came out earlier this year. Their relatively inexpensive dramas for
adults could be valuable for the Hulu streaming service, which
Disney will take control of in the acquisition.
Amid the uncertainty, Ms. Snider has emphasized a revamp of
Fox's approach to animation, bringing in a new partner to replace
an expired deal with DreamWorks Animation after it was acquired by
Comcast Corp. The film studio is partnering with the Fox television
studio on a big-screen adaptation of the animated series "Bob's
Burgers," a second "Simpsons" movie in development and a "Family
Guy" film that would mix animation with live action, said people
with knowledge of the projects.
At the same time, Ms. Snider is moving her film studio into TV
production, with series in development based on its "Diary of a
Wimpy Kid," "Ice Age" and "Night at the Museum" film franchises.
Fox Searchlight has expanded into television as well.
-- Erich Schwartzel contributed to this article.
Write to Ben Fritz at ben.fritz@wsj.com
(END) Dow Jones Newswires
August 10, 2018 09:15 ET (13:15 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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