David Zaslav’s attempt to quietly cancel Coyote v. Acme backfired spectacularly.
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How it started
Under David Zaslav’s leadership, WBD embraced the controversial strategy of shelving nearly finished projects to take advantage of tax write-offs. This move was part of a broader effort to manage its mounting debt and operational expenses, leading to the cancellation of Adil El Arbi and Bilall Fallah’s live-action Batgirl and the Scoob! Holiday Haunt film. While the Christmas-themed Scooby-Doo prequel didn’t generate much buzz, the cancellation of Batgirl was unexpected, especially considering its hefty production cost of around $90 million and its role in Warner Bros.’ interconnected DC universe. The DCEU was already facing challenges, but it was shocking to see a studio discard its own films for a quick financial gain.
Similar to Batgirl and Scoob! Holiday Haunt, Coyote v. Acme was nearly complete when WBD announced in 2023 that it would be shelved. By this time, the public had become increasingly aware of Zaslav’s willingness to sacrifice creative projects, with him claiming that canceling Batgirl required “courage.” As fans expressed their disappointment online, filmmakers began instructing their agents to cancel meetings with the studio, fearing their projects might meet the same fate. Instead of accepting this as the new norm, audiences, who had already witnessed HBO cut shows like Sesame Street and Westworld, viewed this as a sign of WBD prioritizing profits over artistic integrity.
The backlash against Coyote v. Acme’s shelving clearly affected WBD by November 2023, prompting the studio to offer other production companies like Netflix and Amazon the chance to acquire the film’s distribution rights. Despite receiving multiple offers, WBD rejected them, leading to speculation that they were merely testing the waters without genuine intent to sell. However, in 2025, Ketchup Entertainment, which had previously acquired the rights to WBD’s The Day The Earth Blew Up: A Looney Tunes Movie, successfully bid to bring Wile E. Coyote’s latest adventure to theaters.
How it’s going
Since then, Zaslav has become increasingly entangled in the potential acquisition of WBD by David Ellison’s Paramount Skydance, while Ketchup Entertainment has been preparing to deliver Coyote v. Acme a proper theatrical release. The film’s first trailer dropped this week, generating excitement akin to an Acme product that actually works. Fans have rallied around the idea of a movie critiquing unscrupulous corporations, celebrating the blend of 2D animation with live action, and turning Coyote v. Acme into a rallying point. Director Dave Green expressed gratitude for the “unwavering support” from fans, and Ketchup has cleverly marketed the film as something WBD (read: Acme) doesn’t want you to see.
Meanwhile, WBD’s shareholders have approved Paramount Skydance’s $110 billion acquisition offer. While Zaslav may not walk away with a massive payout, he could still exit the company with a substantial golden parachute. The situation suggests that no number of canceled projects could prevent WBD from seeking a buyer, and Coyote v. Acme underscores the goodwill that Zaslav and his team chose to overlook.
What happens next
The next chapter promises to be intriguing, as it will send ripples through the entertainment industry regarding Zaslav’s leadership and the impact of public outrage. It’s challenging to gauge whether the excitement for Coyote v. Acme stems from genuine interest in the film or a desire to thumb their noses at Zaslav. While fans may express enthusiasm for seeing Wile E. and Bugs Bunny back on the big screen, it’s worth noting that WBD’s last three Looney Tunes films—Looney Tunes: Back in Action, Space Jam: A New Legacy, and The Day The Earth Blew Up—failed to perform well at the box office. One has to wonder if Coyote v. Acme would have fared any better had it been released without the surrounding drama.
If the film becomes a significant success, it will be a win for Green and his creative team, but it will also highlight how Zaslav’s management style led to WBD missing out on an easy victory. Zaslav likely isn’t overly concerned with theatergoers’ opinions of his leadership; if the Paramount merger goes through, he’ll move on to new opportunities. Other studios, including Paramount—currently dealing with the fallout from The Last Airbender animated movie leak—will be closely watching Coyote v. Acme’s performance this summer, as it will indicate how online buzz translates to box office success. This could turn into another Morbius situation, where viral memes don’t translate into ticket sales. However, if Coyote v. Acme becomes a hit, fans may realize their voices can indeed influence how the entertainment industry operates.
By the way
* Those who have seen Coyote v. Acme have given it rave reviews. Test audiences reportedly enjoyed it, and animation veterans like Phil Lord and Chris Miller praised it for its intelligence, humor, and charm.
* If you’re invested in this story, you should check out Ian Frazier’s 1990 New Yorker piece “Coyote v. Acme,” which inspired the film. Unlike the trailer, Frazier’s story takes a more serious tone, detailing the injuries the plaintiff suffered from using the defendant’s products over the years. It’s a clever, dry humor piece that makes you appreciate the effort to bring it to the big screen.
* With Paramount moving closer to acquiring WBD, it’s a good moment to reflect on WBD’s past mergers that seemed promising (at least to executives and shareholders) until things went awry. Ellison might break the WBD merger curse, but history suggests he’ll face significant challenges.