Largo CEO Is Moving to Universal

Film producer Lawrence Gordon resigned Wednesday as chief executive of Largo Entertainment--the first major Hollywood venture backed by Japanese money during the free-spending 1980s--for an exclusive production deal at Universal Pictures.

The move had been expected for weeks, as rumors circulated in Hollywood that Largo was running out of cash due to a dearth of hits and a financial drain from overhead costs. In an interview, Gordon would not discuss specifics except to say he wants to get back to making movies instead of running a company. He also denied persistent talk that Largo is on its last legs.

“Largo still has the ability to finance movies, still has projects in development and still has two films to release, so I don’t think Largo is out of business,” he said.

Victor Co. of Japan (JVC), which backed Gordon with $100 million in 1989, after he produced “Die Hard” and “Field of Dreams,” said Largo will continue to operate and that the subsidiary will be restructured. Gordon will oversee the releasing of Largo’s “The Getaway,” with Alec Baldwin and Kim Basinger, and the Jean-Claude Van Damme film “Time-cop.”

Sources said Largo has been unable to get the money to make the kind of big-budget films that have the best chance of becoming box office hits.

For example, it had to give up some projects, such as the upcoming “Die Hard 3” and the Kevin Costner film “Waterworld.”

Largo’s track record was also generally weak. The company had a hit in “Unlawful Entry,” but it has suffered from a string of disappointments with “The Super,” “Dr. Giggles” and, most recently, “Judgment Night.”

JVC’s deal with Gordon, who was president of 20th Century Fox from 1984 to 1986, was front-page news because, at the time, it was the biggest and boldest move by a Japanese company to back film production in Hollywood.

Since then, Sony Corp. has bought Columbia Pictures and Tristar Pictures, and Matsushita Electric Industrial--which controls JVC--has bought Universal parent MCA Inc.

The days of free spending on the part of Japanese companies quickly came to an end as the Japanese economy soured in the early 1990s, and that made money tighter for Largo, sources said.

Because JVC is controlled by MCA owner Matsushita, there has been talk that Gordon’s move was orchestrated by the Japanese electronics giant. But MCA Motion Picture Group Chairman Tom Pollock denied rumors that Matsushita orchestrated Gordon’s move.

“It was Larry’s and (JVC’s) decision . . . and I wanted to be in business with Larry Gordon,” Pollock said.