How David Zaslav’s Bet Against ‘Coyote vs. Acme’ Backfired at the Box Office

Three years after Warner Bros. shelved “Coyote vs. Acme” as a tax write-off and sold it to Ketchup Entertainment, the Looney Tunes comedy has emerged as a box-office success, grossing over $100 million globally. The film’s strong performance raises questions about Warner Bros. Discovery CEO David Zaslav’s decision to axe the project based on financial concerns.

The answer depends on whose books you’re looking at, according to industry analysts. “Coyote vs. Acme” has been a major win for Ketchup Entertainment, which acquired distribution rights for $50 million and pre-sold international territories to offset costs. However, the financial picture differs for Warner Bros., given the film’s $70 million production budget and the fact that theater owners typically retain half of ticket sales. Warner Bros. ultimately took a $30 million tax write-down on the live-action/animated hybrid starring Will Forte and John Cena, produced by DC Studios co-chief James Gunn.

Some argue Warner Bros. could have achieved higher global returns with greater marketing investment. Others suggest audiences rallied behind the film specifically to prove the studio wrong. Notably, “Coyote vs. Acme” significantly outperformed another recent Ketchup-distributed Looney Tunes film—”The Day the Earth Blew Up: A Looney Tunes Movie”—which earned just $15.4 million worldwide.

“It’s easy to assess a decision after seeing the results,” says Shawn Robbins, founder of Box Office Theory and director of movie analytics at Fandango. “The film succeeded partly due to fan support, but it also turned out to be genuinely entertaining.”

Buoyed by strong critical reception and word-of-mouth, “Coyote vs. Acme” launched in late August with $15.9 million domestically. The film has since earned $59.8 million in North America and $45 million overseas, highlighting the continued appeal of family-friendly content from recognizable franchises. Theater owners have consistently expressed frustration over the lack of new releases targeting broad audiences, especially as original animated films have struggled in the post-pandemic era. Meanwhile, revivals like “Sonic the Hedgehog” and “PAW Patrol” have proven reliable modest earners.

The success of “Coyote vs. Acme” becomes even more striking when compared to Warner Bros.’ disappointing box-office lineup. The studio has released several high-profile flops in recent years, including Tom Cruise’s “Deeper” and DC’s “Supergirl.”

“That IP carried legacy value, and these box-office numbers reflect it,” says analyst David A. Gross of FranchiseRe. “All-audience films like this one tend to be among the biggest earners. Stronger marketing could have expanded that potential even further.”

Additionally, the widespread negative reaction to shelving a finished film—one that performed well in test screenings—may have cost the studio more than just money, according to studio insiders. The controversy also damaged Zaslav’s relationship with Hollywood creatives, particularly following his predecessor Jason Kilar’s controversial simultaneous theatrical and HBO Max strategy in 2021. Despite pushback from within the company, Zaslav reportedly deferred the final decision to financial teams.

At the time, “Coyote vs. Acme” was the third film sacrificed under Zaslav’s cost-cutting measures. In 2022, he famously canceled the $90 million DC film “Batgirl” and the family title “Scoob! Holiday Haunt.” All three projects were approved by Kilar before his departure. Zaslav, who took over the company, stated he was refocusing on theatrical releases and that “Coyote vs. Acme” didn’t align with the new creative direction. Industry observers question whether Zaslav fully appreciated the monetization potential of Warner Bros.’ extensive content library. With these films rooted in established brands, their absence from the release schedule may have represented missed opportunities rather than preserved assets.

“We see so many sequels and reboots for a reason—they generate revenue,” Robbins notes. “The fact that ‘Coyote vs. Acme’ is built around well-known intellectual property adds to the intrigue around Warner Bros. letting it go.”

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