Breaking News: ‘Coyote vs. Acme’ Film Saved: Inside the Dramatic Turnaround!

Over a year since Warner Bros. decided to put “Coyote vs. Acme” on hold due to tax benefits, the film inspired by Looney Tunes is nearing a new distribution deal.

Ketchup Entertainment is poised to secure the distribution rights for “Coyote vs. Acme.” Although the transaction is not yet finalized, the acquisition is expected to be around the $50 million mark, as per a report by Deadline who first announced this development.

As an independent distributor, Ketchup Entertainment recently managed the theatrical launch of “The Day the Earth Blew Up: A Looney Tunes Movie” following Warner Bros. Discovery’s decision to sell the film. Since its debut on March 14, “The Day the Earth Blew Up” has earned $3.9 million domestically.

“Coyote vs. Acme,” which blends live action with animation and features stars John Cena and Lana Condor, was directed by Dave Green and produced by James Gunn, co-chief of DC Studios. Initially completed in November 2023, Warner Bros. wrote off the film for a $30 million tax deduction, leading to significant disappointment within the film industry. The studio subsequently permitted the film’s creators to seek other distributors. During this period, streaming giants such as Amazon Prime Video, Apple, and Netflix considered the film but ultimately did not pursue deals.

When it was shelved, “Coyote vs. Acme” became the third film affected by Warner Bros.’ cost-reduction strategy following the pandemic. Approximately a year prior, the studio had surprised the entertainment world by also shelving “Batgirl” and “Scoob! Holiday Haunt,” both of which were scheduled for release and had substantial budgets of $90 million and were also written off for tax purposes. All three projects were approved under the leadership of former studio head Jason Kilar, who left the company in April 2022.

Since its establishment in 2012, Ketchup Entertainment has been involved in releasing various independent films, including Michael Keaton’s “Goodrich,” Ben Affleck’s “Hypnotic,” and Jessica Chastain’s “Memory.”