No, Newline was its own division of WB, but during the financial bubble bursting, and shortly after Golden Compass lost $100M they gutted it and drastically reduced their scope of operations. It's still technically its own division but now it's more of a sock puppet.

The Hobbit for instance is a WB production, not Newline.

Apparently sometime shortly before they got the axe they paid Susanna Clarke a 7 figure sum to option Jonathan Strange and Mr Norrell. I don't know a whole lot about options but 7 figures sounds like about 8-16x what people usually do especially for a 3 year old book by an unknown author. IIRC, that's more than Andy Weir got for The Martian. And more than Lev Grossman is worth today, and he got five seasons out of three books.

That option expired unused and BBC One and Cuba Pictures made it into a very good miniseries. Does feel a bit like a pattern of financial exuberence.

The BBC Jonathan Strange & Mr Norrell miniseries is excellent. One of those times (others might include the original LOTR films and early Game of Thrones) where a genre adaptation wildly exceeded my expectations.