Originally Posted by Lotus
He's basically saying that New Line is "dead," and that they're seriously looking into merging New Line and WB.
However some could see it as a "New Line," is for sale. All New Line has going for it is "The Hobbit," but that alone would push New Line's costs to nearly $8B to purchase (if they were willing to sell).
In reality another film studio could buy New Line as they do have an impressive back catalog. Look at what happened a few years ago with MGM also then owned by Warner. Being bought by Sony and then shifting to Fox. Warner must really be hurting for money now which explains why they took the 500 million dollar pay off.