Imagine Entertainment’s Founders to Leave

The founders of Imagine Films Entertainment Inc., the company responsible for such hits as “Parenthood” and “Kindergarten Cop,” plan to leave the company near the end of the year.

Ron Howard and Brian Grazer, in a prepared statement, said they will form a private production company when their contract with Los Angeles-based Imagine expires in November.

“Ron and I want to keep working closely together, but after six years of coping with the demands of running a public company, we have concluded that we would rather focus all of our time and creative energies on making movies,” Grazer said in the statement.

Imagine executives could not be reached for further comment Friday. The company’s offices were closed, as were many other businesses, after two days of rioting in and around Los Angeles.

In their statement, Howard and Grazer said they may submit a proposal to purchase Imagine Films, in which the public shareholders would receive about $9 a share. Imagine Films stock fell $1.25 per share to close at $8 Friday in over-the-counter trading. Howard and Grazer may also continue their business alliance with MCA Inc., which holds a 24% stake in the company.

Howard and Grazer reportedly were unhappy with MCA’s contract renewal proposal.

MCA’s Universal Pictures is Imagine’s primary distributor. It will release two Imagine films in the next two months: “Housesitter,” with Steve Martin and Goldie Hawn, and “Far and Away,” staring Tom Cruise, which will close out this year’s Cannes Film Festival.

Howard and Grazer first announced possible plans to leave the company last December.