Fox Films Chief Roth to Quit for Disney Deal

The upheaval in Hollywood continued over the weekend as 20th Century Fox Chairman Joe Roth completed a deal to start his own production company at Walt Disney Studios.

Roth, who released the blockbuster movie “Home Alone” during his three years at Fox, becomes the second studio chief in a week to exit his post. Paramount Pictures Chairman Brandon Tartikoff stunned the entertainment industry when he announced his resignation last week.

Industry sources said Roth, who is one of Hollywood’s most respected studio executives, decided against renewing his contract with Fox after failing to win a package of lucrative financial concessions from Rupert Murdoch, chairman of Fox Inc.

The Disney agreement puts Roth, 44, in the upper echelon of independent producers in Hollywood. Sources said the studio will finance and distribute up to 30 Roth films over the next five years. The deal was informally agreed upon late Sunday, according to people close to the discussions.

Roth could not be reached for comment Sunday. A Disney spokeswoman declined to discuss the negotiations, but sources at the Burbank studio confirmed that the deal had been made, after Roth held a final meeting with Murdoch.

Murdoch was unavailable for comment during the weekend. But sources said that the media baron, who took control of Fox Inc. after Chairman Barry Diller resigned this year, might manage the studio himself.

One possible successor to Roth is Peter Chernin, president of Fox Entertainment Group, the programming arm of the Fox TV network. Chernin, who joined Fox in February, 1989, is a former president of Lorimar Film Entertainment, where he helped shepherd such projects as “Dangerous Liaisons” and “Action Jackson.”

According to one knowledgeable associate, Roth, whose previous contract expired in July, was unhappy in his role as a studio executive and preferred the mantle of filmmaker, which he was before he took the Fox post. “Joe was a short-term player at Fox,” the associate said. “The daily fights to make long-term decisions did not interest him.”

In addition, sources said, Murdoch’s growing interest in the film division may have been a factor. Although Roth said that Murdoch was not getting involved in creative decisions, the media baron nonetheless has not hesitated to make his views known on the business side of making films. “You can get a ‘yes’ out of Murdoch much easier than you could Diller,” said one Fox executive. “But (Murdoch is) also much easier to criticize” others.

Typically, when a studio chief exits, many of the projects and people he leaves behind are re-evaluated by the successor. But sources stressed that there should be minimal turmoil if Roth leaves because most observers expect a Fox insider would get the job.

Roth will remain in his post long enough to oversee the release of Fox’s high-profile holiday films: “Home Alone 2,” the Barry Levinson-directed “Toys,” starring Robin Williams, and “Hoffa,” starring Jack Nicholson.

Roth’s resignation will be the latest in a series of high-level executive changes in Hollywood, including Tartikoff’s announcement Thursday that he was leaving Paramount, after only 15 months on the job, to care for his daughter, who is recovering from injuries suffered in a car accident. A replacement has not been announced, but Paramount Communications President Stanley R. Jaffe will serve as interim studio chief.

Several weeks ago, a major consolidation of talent agencies occurred as Triad Artists merged with the William Morris Agency, and senior agents from InterTalent left to join two competing companies.

Some executives see the economic downturn as the connecting link between the latest moves. Talent agencies have been squeezed by the slowdown in business. And a stagnant box office year, coupled with sky-high production and marketing costs, have cut into studio profitability.

The Disney deal, negotiated by Creative Artists Agency Chairman Michael Ovitz and entertainment lawyer Barry Hirsch, developed after months of unsuccessful talks with Murdoch. In an interview Thursday, Roth acknowledged that he was considering other opportunities. Another option was said to be a production deal at Columbia Pictures.

The discussions started to wind down over the weekend after Roth and Walt Disney Studios Chairman Jeffrey Katzenberg held a two-hour meeting at Katzenberg’s Beverly Hills home Friday night.

Although he is best known for gambling on a small comedy called “Home Alone,” which took in more than $283 million in U.S. theaters, Roth also released the expensive failures “For the Boys” and “Shining Through.” The studio returned to the winner’s circle recently with “The Last of the Mohicans.”

Like other top studio executives, Roth was well compensated at Fox. In addition to his reported $1.3-million salary, he could earn up to 2% of the film division’s operating income after certain provisions. During the year “Home Alone” was a huge hit, Roth earned about $5 million.

STUDIO WATCH: Brandon Tartikoff, Paramount’s outgoing boss, leaves amid signs that things were amiss at the studio. F1

JOE ROTH

NAME: Joe Roth

POSITION: Chairman, 20th Century Fox Film Corp.

AGE: 44

RESIDENCE: Brentwood

FAMILY: Married, father of three.

HITS: “Home Alone,” “Die Hard 2,” “The Last of the Mohicans.”

FLOPS: “For the Boys,” “Shining Through,” “Buffy the Vampire Slayer.”