Metro-Goldwyn-Mayer Inc.'s much-ballyhooed plan to revive the moribund United Artists studio was derailed Wednesday when the movie label's chief executive, Paula Wagner, stepped down after less than two years on the job.
Wagner's departure marks an end to her longtime business partnership with actor Tom Cruise, who, along with Wagner, was recruited by MGM chief Harry Sloan in 2006 in a bid to bring UA back to life and help return the struggling MGM to its former stature as a major Hollywood player.
Wagner and Cruise have been a producing team for more than 15 years, making such movies as the "Mission: Impossible" series and "War of the Worlds." Before the two formed a production company in 1992, Wagner was Cruise's agent for 11 years.
The development also spells uncertainty for Cruise, who had hoped to revive his career by resuscitating one of Hollywood's most storied movie studios. Cruise and Wagner joined UA just two months after their dramatic departure from Paramount Pictures amid a bitter falling out with Sumner Redstone, chairman of the studio's parent, Viacom Inc. Redstone publicly berated Cruise for his off-screen antics, which the mogul blamed for the actor's diminishing box-office appeal.
The fate of UA and how long Cruise will stay in the fold are now in question. Cruise is not an executive at UA but, together with Wagner, owns a 30% stake in the studio and is involved in creative matters.
"I love Paula," Cruise said through his publicist. "We've worked together and have been friends for almost 25 years. I support her in anything she does . . . and I look forward to working together and producing films in the future."
In a statement, MGM said that the two would retain their ownership interest and that "nothing will change in regard to Mr. Cruise's involvement with UA." MGM said he and Wagner would continue to work on some UA projects together.
MGM did not name a successor to Wagner, who has been negotiating to leave her job for several weeks, as was first reported Wednesday on the Wall Street Journal's website.
Wagner, who like Cruise was not available to comment, will return to being a producer under her own movie shingle.
"As much as I've enjoyed my time as an executive, I have longed to return to my true love, which is making movies, so that's what I've decided to do," she said in a prepared statement.
