Coyote v. Acme: How a Shelved Film Became a Symbol of WBD's Corporate Strategy

Under David Zaslav’s leadership, Warner Bros. Discovery (WBD) embraced the practice of shelving nearly completed projects to realize tax write-offs. To manage its substantial debt and operating costs, the studio cancelled projects such as Adil El Arbi and Bilall Fallah’s live-action Batgirl feature and Michael Kurinsky and Bill Haller’s Scoob! Holiday Haunt.

While a Christmas-themed Scooby-Doo prequel might not have generated widespread excitement, the cancellation of Batgirl was surprising given its reported $90 million production cost and its intended role within the then-current DC Extended Universe (DCEU). The DCEU was already facing challenges, but the studio's decision to discard completed films for guaranteed cash was seen as a drastic measure.

Coyote v. Acme, also nearly finished, was put on ice by WBD in 2023. By this point, the public was more aware of Zaslav's willingness to abandon creative partners, a stance highlighted when he called the Batgirl axing "courageous." This led to filmmakers instructing their representatives to cancel meetings with the studio, fearing their own projects would face a similar fate. The perception grew that Zaslav had transformed WBD into a company prioritizing profits over artistic creation, a view solidified by HBO's earlier removal of Sesame Street and Westworld.

The initial backlash to Coyote v. Acme being shelved prompted WBD to offer its distribution rights to other studios like Netflix, Amazon, and Paramount in late 2023. Despite multiple proposals, WBD declined to sell. It appeared the studio might not have been serious about a deal, but in 2025, Ketchup Entertainment, which had previously acquired WBD's "The Day The Earth Blew Up: A Looney Tunes Movie," successfully purchased the distribution rights for Wile E. Coyote's latest adventure.

Since then, Zaslav has become more involved in the potential WBD acquisition by David Ellison’s Paramount Skydance. Meanwhile, Ketchup Entertainment has prepared for a theatrical release of Coyote v. Acme. The film's trailer, released this week, has been met with enthusiasm, with audiences appreciating the blend of 2D animation and live-action and supporting the film as a cause against what they perceive as exploitative corporate practices. Director Dave Green has publicly thanked fans for their support, and Ketchup Entertainment is leveraging the controversy in its marketing.

Concurrently, WBD shareholders have approved Paramount Skydance's $110 billion acquisition offer. While Zaslav’s financial outcome is not guaranteed, he may still receive a significant severance package. The timing suggests WBD's need to seek a buyer was inevitable, and Coyote v. Acme’s story underscores the goodwill Zaslav and his colleagues forfeited.

The upcoming release of Coyote v. Acme is poised to offer insights into Zaslav's legacy as a studio head and the impact of public outcry on the entertainment industry. It remains to be seen how much of the excitement for the film stems from genuine interest in the movie versus disdain for Zaslav. Previous Looney Tunes features like "Looney Tunes: Back in Action," "Space Jam: A New Legacy," and "The Day The Earth Blew Up" did not achieve box office success, raising questions about Coyote v. Acme's potential performance if WBD had released it.

If the movie proves to be a major success, it would be a triumph for director Dave Green and his team, highlighting WBD’s missed opportunity under Zaslav’s leadership. Zaslav himself likely remains unfazed by public opinion, especially if the Paramount merger proceeds, allowing him to continue his career elsewhere. Paramount and other studios will closely monitor Coyote v. Acme's performance this summer to gauge the correlation between online buzz and real-world profits, drawing parallels to the "Morbius fiasco" where viral memes did not translate to box office success. Conversely, a hit could reinforce the power of audience voices in shaping industry practices.

Initial reactions from those who have seen Coyote v. Acme have been overwhelmingly positive. Test audiences reportedly enjoyed it, and acclaimed animation filmmakers like Phil Lord and Chris Miller praised it as intelligent, humorous, and charming.

For those invested in this story, Ian Frazier’s 1990 New Yorker story "Coyote v. Acme," which inspired the film, offers a more serious, dryly humorous take on the plaintiff’s extensive injuries from using Acme products over the years.

As Paramount nears the completion of its acquisition of WBD, it's worth reflecting on WBD's past mergers that initially seemed promising to executives and shareholders but ultimately encountered difficulties. Ellison faces the challenge of potentially breaking WBD's "merger curse."

Variety has reported that Zaslav is displeased with how Ellison allegedly pressured WBD into accepting the acquisition bid after initial talks with Netflix.

IndieWire has published an article detailing the devastation felt by the "Coyote v. Acme" team following the film's shelving.

Liz's piece from December discusses how David Ellison's father, Larry Ellison, cofounder and chairman of Oracle, provided crucial financing for the WBD acquisition through the family's trust.