Ketchup Entertainment has acquired Coyote vs. Acme for $50 million, rescuing it from potential shelving by Warner Bros. Discovery for tax write-off purposes.
This follows their recent acquisition of The Day the Earth Blew Up: A Looney Tunes Movie.
Following an extended period of intricate negotiations spanning several weeks, Ketchup Entertainment and Warner Bros. Discovery have reached a definitive agreement, ensuring that Coyote vs. Acme will see a theatrical release in 2026.
This resolution marks a significant turn in the film's trajectory, which had been clouded by uncertainty surrounding its release. The film, which reportedly carried a production budget of $70 million, became a subject of intense speculation after Warner Bros. Discovery considered shelving it for tax write-off purposes.
During the initial stages of discussions, Warner Bros. Discovery CEO David Zaslav reportedly aimed to recover the full $70 million production expenditure from potential acquiring studios.
However, the eventual deal, which saw Ketchup Entertainment secure the film for $50 million, reflects a compromise between the two parties, ultimately prioritizing the film's release over immediate financial recoupment.
It should be noted that as a live-action/animation hybrid film, Coyote vs Acme has a much higher production budget than The Day the Earth Blew Up: A Looney Tunes Movie ($15 million).
To date, The Day the Earth Blew Up: A Looney Tunes Movie has grossed $10.45 million worldwide, with $8.06 million of that coming from the domestic box office.
In a press release, Ketchup Entertainment CEO Gareth West stated, "We’re thrilled to have made a deal with Warner Bros. Pictures to bring this film to audiences worldwide."
"Coyote vs. Acme is a perfect blend of nostalgia and modern storytelling, capturing the essence of the beloved Looney Tunes characters while introducing them to a new generation. We believe it will resonate with both longtime fans and newcomers alike."
With Coyote vs Acme now saved, fans are now hoping for a similar outcome for Batgirl and Scoob! Holiday Haunt- both were also canceled by WB Discovery CEO David Zaslav for tax write-off purposes.
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.
Directed by Dave Green, Coyote vs Acme is produced by Chris deFaria and James Gunn with a screenplay by Samy Burch.