COMPANY TOWN : New Line Gains Domestic Rights to 4 Savoy Films

The dismantling of Savoy Pictures’ movie business continued Monday with New Line Cinema gaining domestic distribution rights to four upcoming Savoy films.

Included in the deal are the live-action “Carlo Collodi’s Pinocchio,” “The Stupids” with Tom Arnold, the Paul Mazursky-directed “Faithful” and “A Thin Line Between Love and Hate” directed by and starring Martin Lawrence. All told, sources estimate the deal at about $50 million, a figure that includes New Line’s assumption of committed prints and advertising costs.

Hollywood sources said New Line could have bought more films, but settled on the four.

“We’re enthusiastic about the four films, and think they are going to perform,” New Line President Michael Lynne said.

Savoy will remain an equity investor in the four movies as part of the deal, technically a co-financing arrangement. Savoy also will be listed in the credits.