CRUISE CUTS DEAL TO RUN UA ACTOR LOOKS TO REVIVE IMAGE.

Byline: GREG HERNANDEZ Staff Writer

From fallen superstar to movie mogul?

Tom Cruise and longtime producing partner Paula Wagner will run and partially own a new incarnation of the United Artists film label as part of the revived Metro-Goldwyn-Mayer studio.

The surprise comes less than three months after Cruise and Wagner's production deal at Paramount Pictures was dropped with Viacom Chairman Sumner Redstone blaming Cruise's controversial off-screen behavior for the lukewarm box office performance of ``Mission: Impossible III.''

``We've put the past behind us, and we've moved on,'' Wagner said in an interview Thursday. ``Tom and I have always been about the work, always been about making movies. It's the work that should speak for itself.''

In addition to part ownership, Cruise and Wagner will control UA's production slate from development to greenlighting projects. But the final decisions will likely be subject to certain budget parameters. Wagner, who will oversee the day-to-day operations as chief executive officer, said the deal came together over the past few months.

``They approached us, and it was one of those synergistic things,'' she said. ``I think it's fantastic and that in a way, I'm forging into new territory. It's taking the best of a production company and the best of a studio and creating in many ways a new model. The concept is a company that is artist-driven and run by artists, Tom Cruise and I.''

Cruise is expected to star in some of the UA movies he produces but will still be able to act in projects for other studios.

``Paula and I are very respectful of the rich history and tradition of United Artists, and we welcome the opportunity to contribute to that legacy by providing a wide range of releases that appeal to all audiences,'' he said in a statement.

Modern film pioneers

MGM Chairman and CEO Harry E. Sloan called Cruise and Wagner ``the modern versions'' of the iconic founders of United Artists -- Douglas Fairbanks, Mary Pickford, Charlie Chaplin and D.W. Griffith.

``Our partnership with them reaffirms our commitment to providing creative talent with a comfortable home at United Artists and a dedicated distribution partner in MGM,'' Sloan said in a statement.

The pair, who launched Cruise/Wagner Productions as an independent production company in September 1993, opened their office Thursday at MGM's headquarters in Century City.

In addition to the three movies in the ``Mission: Impossible'' franchise, they have produced the Cruise vehicles ``War of the Worlds,'' ``The Last Samurai'' and ``Vanilla Sky.''

But except for the thriller ``The Others,'' starring Nicole Kidman, other films produced by the pair not starring Cruise, such as ``Narc'' and ``Shattered Glass,'' have barely registered a blip at the box office.

``It's unknown if success can extend beyond his performance attributes,'' media analyst Hal Vogel said. ``At this point, it's just a press release. After the first film or two comes out, we'll know if it's a comeback or not. (UA's) success will depend on Cruise's image to some extent, but really it will be about the quality of the projects.''

Image problem

The once-golden public image Cruise had enjoyed for more than two decades had plummeted to such a degree that, in July, Paramount offered a reduced figure of just $2million annually -- down from a $10.5million deal -- to run their offices on Paramount's lot.

Then came the blast from Redstone about Cruise's number of highly criticized public appearances during the promotion of 2005's ``War of the Worlds.'' They included a combative appearance on NBC's ``Today'' show during which he criticized Brooke Shields' taking of anti-depressants to treat postpartum depression and a couch-jumping incident on ``The Oprah Winfrey Show'' when the actor proclaimed his love for fianc(hrt)e Katie Holmes, the mother of his infant daughter, Suri.

Cruise also began stumping more zealously for the Church of Scientology, a controversial self-help belief system that he has long followed.

Making matters worse, ``Mission: Impossible III'' launched the 2006 summer movie season with a disappointing opening weekend gross of $47.7million and stalled at $133.4million domestically. That fell well short of the $215.4million ``Mission: Impossible II'' grossed domestically in 2000.

Positive PR

While Redstone again ripped Cruise in the current issue of Vanity Fair, saying he has turned off female moviegoers, the actor has been taking steps to repair his battered public image.

He apologized, in person, to Shields for his remarks and has laid low since the summer, mostly being sighted at sporting events involving his son and daughter from his marriage to Kidman.

But he, Holmes and baby Suri did appear on the cover of Vanity Fair this fall, and the couple announced their plans to get married in Italy later this month.

Cruise, 44, has long been one of the movie industry's biggest stars since bursting onto the scene in ``Risky Business'' in 1983.

His first $100million-grossing hit was for Paramount in 1986 with ``Top Gun.'' Since then, 13 more Cruise films have reached that milestone domestically, including the past seven in a row.

Wagner has stood by Cruise through all the highs of their box office successes and the lows of his recent publicity nightmare. She said they will look to develop a ``really broad range of films'' from high-concept movies to character-driven stories.

``Tom and I are both thrilled about the opportunity to take a venerable brand such as UA and commit ourselves to re-establishing UA, setting up films, working with talent and proceeding with the job of making movies,'' she said.

MGM's resurgence

UA plans a production slate of about four films each year, a total that could increase in the future. Worldwide marketing and distribution of UA films will be handled by MGM, which will also fully finance production and development.

While Cruise and Wagner have not announced their first title, MGM already has plans for new installments of several franchises including ``Rocky Balboa,'' out next month; as well as ``The Terminator'' (without Arnold Schwarzenegger); ``The Pink Panther,'' starring Steve Martin; and ``The Thomas Crown Affair,'' starring Pierce Brosnan.

The legendary studio had been reduced to a DVD library last year but was brought back to life in March as a distributor of such films as ``Flyboys'' and ``School for Scoundrels.'' It is the only major studio controlled by private-equity firms, which include Providence Equity Partners and Texas Pacific Group, along with industry partners Comcast Corp. and Sony Corp. of America.

MGM Chief Operating Officer Rick Sands called the relationship with the new UA ``an ideal collaboration of art and business.''

``The resurgence of United Artists will take us another step closer to realizing the full revitalization of MGM,'' Sands said.

greg.hernandez(at)dailynews.com

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2 photos

Photo:

(1 -- color) Tom Cruise and Paula Wagner will run and partially own the United Artists film label as part of a revived MGM studio.

Tammie Arroyo/Associated Press

(2) Tom Cruise, on the field before an NFL game in September, looks to rebuild his image, which plummeted after a number of highly criticized public appearances.

Jamie Squire/Getty Images