Warners Bros. recently screened their ill-fated film, Coyote vs. Acme, to a limited group of potential buyers. With a production cost exceeding $70 million, the studio was seeking a hefty sum for the film. However, both Netflix and Paramount offered bids significantly lower than the asking price, indicating their lack of interest in acquiring the feature at such a high cost. Warner Bros. ultimately took a $70 million writedown on their Q3 earnings, a significant blow to the studio.
Despite the decision made by Warner Bros. to not release Coyote vs. Acme, the fate of the film remains uncertain. While no official efforts are being made to sell the movie, there is still a glimmer of hope that a potential buyer will emerge. However, the likelihood of such a savior seems slim. Could someone like David Ellison, with his affiliation to Skydance and Netflix, step in to rescue the film from its purgatory-like state? It appears that the chances are slim to none.
Phil Lord, the renowned filmmaker behind the successful Lego Movie franchise, expressed his dismay with Warner Bros.’ decision on Twitter. Lord questioned the studio’s motives and accused them of using a tax loophole to write off the entire film, potentially enabling an easier merger with another major studio. His tweet sparked a conversation about the potential anticompetitive nature of Warner Bros.’ actions.
Lord’s tweet further alluded to the climax of Coyote vs. Acme, suggesting a fitting conclusion to the entire ordeal. In a tongue-in-cheek manner, he proposed that the film’s narrative could conclude with a congressional hearing. This reference serves to highlight the absurdity of the situation and the controversy surrounding Warner Bros.’ decision to scrap a fully completed film in favor of financial gain.
Lord’s tweet resonated with Texas congressman Joaquin Castro, who had previously voiced his concerns about Warner Bros.’ tax write-off tactics. Castro criticized the studio’s behavior, considering it predatory and anti-competitive. He called upon the Justice Department and the Federal Trade Commission to review Warner Bros.’ conduct in light of ongoing antitrust concerns. Castro compared the studio’s actions to burning down a building for insurance money, drawing attention to the questionable ethics at play.
While Warner Bros.’ CEO, David Zaslav, has not explicitly voiced his disapproval of Coyote vs. Acme, his administration under CFO Gunnar Wiedenfels has gained a reputation for cost-cutting measures and layoffs. This factor may have contributed to the studio’s decision to halt the film’s release, despite initial intentions and the successful testing of marketing materials.
Interestingly, the South by Southwest (SXSW) festival in Austin, Texas showed interest in programming Coyote vs. Acme. However, Warner Bros. declined the offer to screen the film at the renowned event. It remains uncertain why the studio chose to forgo this opportunity, especially considering the potential exposure and buzz it could have generated.
The fate of Coyote vs. Acme hangs in the balance. Warner Bros.’ decision to reject lower offers and subsequently take a massive writedown on their Q3 earnings has raised eyebrows within the industry. The anticompetitive allegations surrounding the studio’s actions, as well as the criticism from prominent figures such as Phil Lord and congressman Joaquin Castro, have further deepened the controversy. With no clear resolution in sight, the future of Coyote vs. Acme seems uncertain at best.