According to a recent update on Warner Bros. Discovery's plans for Coyote vs Acme, after much deliberation, Warner Bros. Discovery and CEO David Zaslav are all but set on proceeding with plans to vault the film for tax write-off purposes.
Details on this controversial move first surfaced in November 2023 but just a few days after those first reports made their way online (and a ton of public backlash), Warner Bros. reversed course and decided to sell the film to other streaming outlets and studios.
However, it appears that the offers Warner Bros. Discovery is receiving for Coyote vs. Acme are insufficient to offset potential losses, and the studio is now likely to proceed with plans to write off the film for a tax break.
While some recent reports suggested that WBD was definitely moving forward with this plan, Deadline's most recent update notes that the decision isn't final yet, but time is running short. WBD and Zaslav have already shelved a $90 million Batgirl movie for tax reasons so there's definitely precedent.
The problem is that WBD spent about $70-$75M to produce the film but the offers they've received from Amazon, Apple, and a host of other potential suitors range from $30-$35M.
Zaslav and WBD aren't looking to make a profit on the sale of the film but they want to sell it for the full cost of production ($70-$75M).
The Lego Movie director and Spider-Man: Across the Spider-Verse writer Phil Lord recently chimed in on the situation via X/Twitter.
Former trade reporter turned online scooper Jeff Sneider also weighed in on the situation, providing a counterargument on his blog. Sneider wrote:
"...But this is a business. I know we all want to believe that the new Looney Tunes movie is high art, but it's not - it's a corporate product, one that everyone involved was paid handsomely to create. The performative outrage greeting WB's decision to shelve Coyote vs Amce is truly laughable. It's not David Zaslav's fault that the prior WB regime made the move for way too much money - so much that it left his hands tied. Why should he have to put up $30 to $40 million to market that $75 million movie in theaters if he doesn't think it can crack the $250 million or so it'll need to break even?"
Sneider's argument certainly makes a lot of fiscal sense. It's not like the filmmakers will not be compensated if the picture fails to make it to theaters or streaming. And, by all accounts, no one believes the picture will break even if it actually hits theaters, or that it would generate a slew of new subscriptions if released on Max.
Coyote vs Acme is a mix of animation and live-action, similar to Space Jam and Who Framed Roger Rabbit. Along with the Coyote and Road Runner, the film was set to star Will Forte, John Cena and Lana Condor.
The plot centered on the Coyote suing the Acme corporation after years of failed products that prevented him from apprehending the Road Runner and sometimes getting seriously hurt in the process. Forte was set to play Wile E.'s lawyer, while Cena would have played Acme's CEO.
Where do you stand on the Coyote vs Acme debate? Let us know in the comment section below.