In 1982, Orion merged with Filmways Pictures (which had been successor-in-interest to American International Pictures), and became an independent company. They also introduced a new logo, featuring an animated depiction of the Orion constellation. During the 1980s, they focused on Woody Allen films, Hollywood blockbusters such as the first Terminator film and the Robocop films, as well as Academy Award winners such as Amadeus, Platoon, Dances With Wolves and The Silence of the Lambs. In 1986, billionaire John Kluge invested in the company as a favor to Arthur Krim, and by 1988 his Metromedia organization had become majority owner.

In the late 1980s and early 1990s, Orion had severe financial problems, and declared bankruptcy in 1992. Silence of the Lambs was almost passed on due to lack of funding, and several other projects in production at the time, such as Car 54 Where Are You? and Clifford, had their release delayed by 3 years (from 1991 to 1994) because of the bankruptcy filing. Orion was eventually able to exit bankruptcy (in 1996), but few of the films they released in the 4 years they were under protection made much of a critical or commercial impact.