Silver's resignation as chairman and chief executive of Universal Pictures came on the heels of a disappointing $8.5 million Thanksgiving week debut for the studio's ``Babe'' sequel, which opened on Wednesday.

The weak opening by ``Babe'' followed a lackluster showing by ``Meet Joe Black,'' which cost more than $80 million to make but has taken only in $35.8 million since its release 17 days ago.

``We've had a disappointing year at the box office and there are two responses when you have a disappointing year,'' Silver told Reuters in an interview. ``Either go back in there and have a better year or make a change.''

The studio's last big hits were ``The Lost World: Jurassic Park'' and ``Liar, Liar,'' both released in 1997.

Silver was asked to resign on Sunday night bypresident and chief operating officer Ron Meyer of Universal Studios. Universal Pictures is the movie wing of Universal Studios, which includes television and networks and theme parks.

Meyer will assume Silver's duties.

Silver's status had been tenuous since Frank Biondi Jr was ousted as chairman and chief executive officer of Universal Studios two weeks ago by Edgar Bronfman Jr chief executive officer of parent company Seagram Co Ltd.

Meyer was put in charge of the movies and theme parks division when Biondi was ousted in a restructuring to give Bronfman more control of operations.

Bronfman has faced mounting pressure to prove his costly strategy to transform the Canadian drinks group into an entertainment giant will pay off. Seagram purchased 80 per cent of MCA/Universal from Matsushita Electric in 1995 for $5.7 billion and is now nearing completion of a $10.2 billion purchase of PolyGram NV.

Seagram financed the MCA/Universal deal by selling its long-held 25 per cent stake in DuPont Co

``There's been a lot of talk that Bronfman has wasted shareholders' money and sold the DuPont stake too early,'' said managing director Steve Cesinger at Greif & Co.

``But I think he's putting his money into content which has a lot of long-term growth. It's not a linear business because there are hits and misses, but I like that Bronfman is getting more involved and that he's not ignoring the film side, which has performed poorly.''

Meyer and other Seagram insiders denied Silver's departure was linked to the poor ``Babe'' opening.

```Babe' is not what created this. This was a decision that was made over changing the dynamics of the motion picture group. Obviously we haven't had the success we thought we should have,'' Meyer said, but added that he was ``gigantically'' disappointed by the opening for ``Babe: Pig in the City.''

Negative press about production delays and a dark storyline have plagued the $60 million talking pig sequel for weeks.

Universal Pictures has been banking onfour holiday films to restore its fortunes: ``Meet Joe Black,'' ``Babe: Pig in the City,'' a remake of ``Psycho,'' and ``Patch Adams.''

Many industry watchers credit Silver with putting together a strong slate for 1999.

``This is eerily representative of the Sony situation where executives lost their jobs only to see films they green-lighted achieve good profitability,'' said one industry executive.

Those Sony films -- including ``Air Force One,'' ``Men in Black'' and ``My Best Friend's Wedding'' -- later turned out to be major hits.

``We have a very deep lineup of movies that the whole team has put together and I think we'll demonstrate strength and consistency. The proof will be in the results,'' Silver said.

Nevertheless, he added, ``I don't think its unfair. I've been on the front lines of this company for almost 12 years and we've been profitable. We're coming off a disappointing year and that's their prerogative,'' said Silver who plans to work with Universalin an independent capacity.

Some films to be released in 1999 include ``Bowfinger's Big Thing,'' starring Steve Martin and Eddie Murphy; ``For the Love of the Game,'' starring Kevin Costner, ``Snow Falling on Cedars,'' starring Ethan Hawke, and a remake of ``The Mummy.''

Stacey Snider on Monday was named president of production, reporting to Meyer, and Kevin Misher was named co-president of production, reporting to Snider. Chris McGurk remains president and chief operating officer, Universal Pictures and will report to Meyer.