Warner Bros. Discovery’s long-shelved hybrid animated-live-action film Coyote vs. Acme may finally see the light of day, as the studio is reportedly in advanced negotiations to sell the project to distributor-financier Ketchup Entertainment, according to Deadline. Sources indicate the deal, which is hovering around the $50 million mark for all rights, could pave the way for a theatrical release in 2026—provided the agreement is finalized. While the sale isn’t set in stone, momentum appears to be building in a positive direction.
The film, directed by David Green and boasting a screenplay from May December writer Samy Burch, alongside contributions from DC Studios co-head James Gunn and Jeremy Slater, stars Will Forte, John Cena, and Lana Condor. Inspired by Ian Frazier’s humorous New Yorker piece “Coyote v. Acme,” the movie follows the iconic Wile E. Coyote as he teams up with a billboard lawyer (Forte) to sue the Acme Corporation after its faulty products repeatedly foil his pursuit of the Roadrunner. The legal battle pits the duo against the lawyer’s formidable ex-boss (Cena), with an unexpected bond forming between the human and cartoon character fueling their resolve.
Despite promising test screenings, Coyote vs. Acme became a casualty of Warner Bros.’ cost-cutting measures two years ago under CEO David Zaslav. The studio shelved the project, which reportedly cost $70 million to produce, and it has languished in limbo for over a year. Early in 2024, Warner Bros. screened the film for potential buyers with an asking price of $70 million, but sources close to the studio say no offers materialized at the time. The decision to abandon the movie drew sharp criticism, including from Lego Movie director Phil Lord, who took to social media to question the studio’s motives, suggesting the shelving might be tied to tax write-offs and merger strategies.
Enter Ketchup Entertainment, a company that’s quickly establishing itself as a savior for Warner Bros.’ discarded projects. Led by Gareth West, the Los Angeles-based outfit previously acquired another shelved Looney Tunes title, The Day the Earth Blew Up: A Looney Tunes Movie, from the studio last year. That film hit theaters this past weekend, pulling in a respectable $3.1 million across 2,827 screens. Like Coyote vs. Acme, it was originally intended as an HBO Max streaming release, greenlit in December 2020 under Warner Bros.’ previous regime.
Ketchup’s potential acquisition of Coyote vs. Acme would mark its most significant investment to date. The company, founded over a decade ago by West alongside partners Artur Galstian and Vahan Yepremeyan, has built a portfolio that includes titles like Michael Keaton’s Goodrich, the comic book reboot Hellboy: The Crooked Man, Ben Affleck’s Hypnotic, and Jessica Chastain’s Memory. Ketchup also backed Michael Mann’s Ferrari and recently expanded into television with a division launched in partnership with Zero Gravity Management and producer Mark Williams.
The shelving of Coyote vs. Acme wasn’t an isolated move for Warner Bros., which has axed other high-profile projects like Batgirl and Scoob Holiday Haunt! in recent years as part of its financial restructuring. The studio’s decisions have sparked frustration among filmmakers and fans alike, with some even rallying outside Warner Bros.’ lot as recently as this month to demand the film’s release.
For now, all eyes are on Ketchup Entertainment and Warner Bros. as negotiations continue. Neither party has commented officially on the talks, leaving the fate of Coyote vs. Acme hanging in the balance. Should the deal go through, it could offer a second chance for Wile E. Coyote and his legal crusade to reach audiences—and perhaps prove that even a shelved film can find its way off the shelf.
Stay tuned to Trevor Decker News for updates on this developing story.
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