While the project still technically remains at Warner Bros., since it controls New Line, the studio is setting up New Line as their horror-centric division. The shift will take the company back to its roots, as it was once known as "The House That Freddy Built," after shepherding the Nightmare on Elm Street franchise. Warner Bros. has had success in the horror genre lately with The Conjuring, which took in over $318 million worldwide from just a $20 million budget. It isn't known if the sequel, The Conjuring 2, which is currently in development, will also transfer over to New Line, which is shifting their facilities from West Hollywood to the Warner Bros. lot in Burbank.
According to The Hollywood Reporter, the plot for IT will be split into two movies. The first half follows a group of children known as The Losers Club, who defeat an evil creature known as IT, who sometimes takes the form of a clown known as Pennywise. The second half will focus on The Losers Club as adults, who must band together again even though they have no memory of their first encounter.
Cary Fukunaga, who directed all eight episodes of HBO's True Detective, has been attached to direct IT since June 2012, co-writing the script with with Chase Palmer. Roy Lee, Dan Lin, Seth Grahame-Smith and David Katzenberg set to produce, although it isn't known when shooting is set to begin.