Intro for March 20, 2025

Dear Gossips,

Today in What is Going On With David Zaslav’s Weird Anti-Toon Agenda, there is an update regarding Coyote vs. Acme and it is actually GOOD. Per Deadline, hilariously named distributor Ketchup Entertainment is negotiating a deal to buy Coyote vs. Acme for an estimated $50 million from Warner Bros. Discovery in an all rights deal, which means they would have global distribution rights.

If you recall, David Zaslav announced they were going to shelve Coyote vs. Acme, which is a mix of live-action and animation in which Wile E. Coyote sues Acme Corp for their faulty products, for a tax write off. This was wildly unpopular across the industry, so WBD hosted a screening for potential buyers, but they asked for $70-80 million for the film, and would not entertain counter offers, which was infuriating because it looked like a bad faith effort to smooth ruffled feathers after everyone balked at the idea of tanking a Looney Tunes movie that was already testing well with audiences.

I am just so relieved to learn that Coyote vs. Acme still exists, that it hasn’t been deleted. When studios write off movies like this, they have to destroy it because they’re declaring it a defunct business asset. When the company announced $115 million in write-offs in 2023’s third quarter, many people assumed Coyote vs. Acme was part of that haul. Apparently not, as they’re still in a position to sell the film. (If they DID declare it a loss and then go on to make money from it…whatever’s left of the IRS might want to look into that). 

The deal is not done, but my fingers are crossed. Ketchup Entertainment is a relatively small outfit, beginning in 2011 and releasing a slew of forgettable films but more recently they’ve stepped up their game, distributing Memory starring Jessica Chastain and Peter Sarsgaard, Michael Keaton’s Goodrich, and co-producing Michael Mann’s Ferrari. They also just released the Looney Tunes movie The Day The Earth Blew Up, which they bought off WBD last year. That was only for North American rights, though the limited deal is working out well for Ketchup. The Day The Earth Blew Up has been well received by critics and audiences, and while the overall box office is in the sh-tter right now, it’s doing well against a $15 million budget. I’m taking my friend’s kid to see it this weekend and I legit can’t wait.

It would appear that Ketchup Entertainment now wants to go big with Coyote vs. Acme and given the success they’ve managed with Earth on virtually no advertising, they might actually come out WAY ahead on a $50 million deal. (That number, by the way, is less than WBD was asking for the film in 2023, but more than the presumed tax write-off.) Family friendly films don’t even have to be good to do well, if Coyote vs. Acme is as good as people say, it could be a breakout hit. At the very least, though, there is a chance this film will see the light of day, and that is a win for the Looney Tunes and us, but more importantly, it’s a loss for David Zaslav’s weird anti-toon agenda. 

Live long and gossip,

Sarah