Big issue with this sort of merger (outside of enabling Murdoch's greed and lust of power) is that the backlog would be massive. We're not exactly getting a tidal wave of deep catalog releases from Fox as it is with a currently barren Summer slate (sublicensed or not) and that would just increase the bottleneck. We're getting better output with the two companies separate. People already complain about WB's release rate in relation to their ginormous film library. Not to mention the merger would immediately interfere with restoration efforts and distribution scheduling as staff would be reshuffled, laid off, etc.
Sublicensing wouldn't increase output of WB titles. For example, Twilight Time will still be releasing one or two films from the company monthly at roughly 16 annually. Except in this new scenario it would be split down the middle with half being Fox titles and half being WB, with the libraries crowding each other out (with the WB library likely getting the lion's share) Same with the direct studio releases. The output overall won't increase, just with WB titles crowding out the Fox titles. Sorta like how WB's deal with Paramount has had Paramount titles crowding out general WB properties as of late.
Think Fox Classic Archives.
Hands off, thank you very bloody much, Mr.Murdoch!!!
Yeah, the company has 80 billion dollars to spend on Time Warner, but can't be arsed to get anyone to improve the inherent shoddiness of the Fox Cinema Archive by getting video masters made within the last 12 years. If that's the standard-bearer for their deeper catalog titles, I wouldn't want them to touch the Warner Archive line with a ten foot pole. There's a reason the WAC website doesn't list or stock their MODs.