‘Coyote vs. Acme’ Film that Warner Bros. Shelved for Tax Break Gets Saved by New $50 Million Distribution Deal

Warner Bros. Discovery
When Warner Bros. Discovery shelved its Coyote vs. Acme film for a tax write-off despite it being totally completed, it drew fury from fans of the cartoon coyote’s antics, other filmmakers and animators, and even the film’s director and actors. But the movie got a new breath of hope on Monday when it was announced that Ketchup Entertainment had scored a distribution deal for a reported $50 million.
Coyote vs. Acme is a live-action animation hybrid, like Who Framed Roger Rabbit and Space Jam. The cast includes Saturday Night Live’s Will Forte as Kevin Avery, a struggling lawyer who agrees to represent Wile E. Coyote in a lawsuit against the Acme Corporation after its products repeatedly fail him in his attempts to capture that tricky roadrunner. John Cena stars as Buddy Crane, Avery’s former boss and now the attorney for Acme. Besides the title character Coyote, the movie reportedly features numerous cameos from other beloved Looney Tunes characters. The original idea was inspired by a 1990 New Yorker article by Ian Frazier, “Coyote vs. Acme.”
The movie had screen-tested well and was highly anticipated by fans, but fell victim to Warner Bros. Discovery’s post-pandemic, post-merger belt-tightening as a $30 million tax write-off. Afterwards, the film was shopped around for a distribution deal to Amazon Prime, Netflix, and Apple, but no deal ever materialized, leaving filmmakers and fans despondent.
Director Dave Green tweeted his appreciation for his “brilliant team” that worked on the film, “who poured their souls into this project for years,” writing that he was “beyond proud of the final product, and beyond devastated by WB’s decision.”
Forte also spoke out in defense of the work of his fellow cast and crew in an open letter he posted on social media, calling it an “incredible” movie that was “[s]uper funny throughout, visually stunning, sweet, sincere, and emotionally resonant in a very earned way.”
“As the credits rolled, I just sat there thinking how lucky I was to be a part of something so special. That quickly turned to confusion and frustration. This was the movie they’re not going to release?” Forte wrote, denouncing the business side of Hollywood that led to such decisions:
Look, when it comes to Hollywood business stuff, I don’t know shit about shit. Even when a movie tests very well (like ours), there’s no guarantee that it’s gonna be a hit. And at the end of the day, the people who paid for this movie can obviously do whatever they want with it. It doesn’t mean I have to like it (I fucking hate it). Or agree with it. And it doesn’t mean that this movie is anything less than magnificent. You would be so proud of it — a movie that should be seen, but won’t. Please know that all the years and years of hard work, dedication and love that you put into this movie shows in every frame. That’s all folks.
Deadline reported on Monday that Ketchup Entertainment had confirmed a deal to obtain the worldwide rights to distribute Coyote vs. Acme. “We had the deal pegged in the $50M range and the film is expected to get a theatrical release in 2026,” wrote Deadline’s Andreas Wiseman.
“We’re thrilled to have made a deal with Warner Bros. Pictures to bring this film to audiences worldwide,” Gareth West, CEO of Ketchup Entertainment, told Deadline. “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.”
Green reacted to the news of his movie being rescued from the void by sharing the Deadline article along with the praying hands and face holding back tears emojis.
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