There goes another boutique studio. Fox Atomic, the arm of 20th Century Fox that handled the genre films and comedies aimed at the teenage to mid-20s market is going to fold up into 20th Century Fox, who will likely pick up some Atomic releases.

Atomic was started in 2007, but it’s death was slow. In January 2008, Fox and Fox Searchlight gobbled up Atomic’s marketing arm, and the studio hasn’t really been producing hits with fare like Turistas…

From Variety:

Label head Debbie Liebling will return as an executive at 20th Century Fox, where she’ll continue to develop comedies and genre pics for co-presidents Alex Young and Emma Watts. The fate of the other executives will be decided next week.

Fox would not confirm the move, and speculation is that the division is being eliminated because it didn’t produce enough hits — and because its chief benefactor, Rice, was elevated to run Fox Broadcasting for Rupert Murdoch.

[…]

Atomic was hoping to make its biggest mark later this year with two potentially commercial films: the July 10 opener “I Love You, Beth Cooper,” directed by Chris Columbus and starring Hayden Panettiere, and “Jennifer’s Body,” the Diablo Cody-scripted, Karyn Kusama-directed horror film that stars Megan Fox and Amanda Seyfried. That film will be released Sept. 18.