Spokespeople from all three companies declined to comment, however it is understood the move stems from the poor theatrical box office performance of HBO Films funnelled through Picturehouse.
Another factor is believed to be the change of corporate culture at HBO following the departure of former chairman and CEO Chris Albrecht. It remained unclear how if at all titles produced by HBO Films would be released theatrically.
Picturehouse was launched at Cannes 2005 as a joint venture between HBO and its Time Warner sibling New Line.
Picturehouse chief Bob Berney will continue to report to New Line co-chairman and co-CEO Michael Lynne and enjoys a productive relationship with the company.
New Line acquired English-language remake rights to JA Bayona's ghost story The Orphanage, which Picturehouse released in North American recently, and is making a fictitious version of Picturehouse's documentary King Of Kong.
Picturehouse's Jul 2 release of HBO Films' family film Kit Kittredge: An American Girl will go ahead as planned. There are currently no further HBO Films projects on the Picturehouse slate although the company may acquire HBO titles in the future if they are deemed to be viable.
Picturehouse's biggest domestic release of 2007 was Guillermo del Toro's Pan's Labyrinth, which opened in December 2006 and went on to make $37.6m domestically.
2007 releases included Olivier Dahan's La Vie En Rose, which took $10.1m and stars the much fancied Oscar contender Marion Cotillard, and Toronto 2006 pick-up El Cantante on $7.7m. Rocket Science and Starter For Ten grossed less than $1m combined.