It was announced today and reported by Variety that Time Warner has made the decision to end New Line's run as an independent studio. They will be folded into Warner Brothers as a division but will maintain separate development, marketing, production, distribution, and business affairs.

This news doesn't really come as much surprise give the fact that New Line has had quite a few duds on their hands over the past several years - the most recent of which was The Golden Compass (which I thought was kinda under-rated).

This can't be good for New Line employees. I can't imagine that all of them will be kept on after the transition. This news comes from a memo sent out by studio co-chairmen Bob Shaye and  Michael Lynne who will no longer be with the studio.