NEW YORK (CNNfn) - Metro-Goldwyn-Mayer Inc. said Monday it intends to reorganize United Artists Pictures into a specialty film division that will compete directly with independent filmmaking giant Miramax Films.
The new organizational structure allows United Artists, a MGM subsidiary, to control everything from production to sales to acquisitions of independent films. All mainstream film production and current United Artists staff, meanwhile, will be consolidated under the MGM Pictures banner.
"This creates a stronger identity for [United Artists], while putting all the mainstream identity at MGM," said Craig Parsons.
Parsons said until the reorganization, MGM and United Artists found themselves competing against one another for independent films. Now, United Artists will be able to focus its attention solely on Miramax, the industry's independent film leader.
In conjunction with the changes, current United Artists President Lindsay Doran has exercised her option to become an MGM independent producer, effective immediately.
Additionally, G2 films, MGM's previous specialty film unit based in London, will change its name to United Artists International while leaving its management and staff in tact.
MGM Vice Chairman Chris McGurk said the company will release more specific information about the reorganization over the next several months, but he confirmed the redesigned United Artists division will continue to have MGM's marketing and distribution support.
There was no disclosure of who will lead the reorganized company.