(Image: Warner Bros. Pictures)
A bombshell report from Puck News yesterday detailed Warner Bros. Pictures' recent string of financial losses, with a sharp focus on the operational strategies of the studio's current co-chairs and CEOs, Michael De Luca and Pamela Abdy.
Since taking the helm in 2022, De Luca and Abdy have greenlit and inherited multiple high-cost films. Many of these projects are considered extremely risky, as the duo has granted significant creative freedom to their directors, who in turn have delivered bold, auteur-driven pictures. However, these films are now beginning to stumble badly at the box office, reportedly causing Warner Bros. Discovery CEO David Zaslav—already known for his tight grip on spending—to lose patience and prepare to intervene.
(Image: The New York Times)
Leading the charge of recent disappointments is "Joker: Folie à Deux." While not a project greenlit during their tenure, De Luca and Abdy oversaw its production and release. The film's box office plummeted from the first film's billion-dollar haul to just over $200 million, while its budget ballooned to four times that of the original (a staggering $200 million). As a result, they are expected to be held accountable. In an unusually bold move to protect plot secrecy, no internal test screenings were held before release, leaving Warner Bros. with virtually no opportunity to make adjustments.
Following closely is the recently released "Mickey 17." The film's production and marketing costs also approached $200 million, but it faltered at the box office last weekend amidst mixed critical reception. The movie is now projected to lose around $100 million.
(Image: Warner Bros. Pictures)
Puck News reports that Warner Bros. was concerned about "Mickey 17" from the start. Director Bong Joon-ho's cut of the film tested poorly with audiences, whereas a separate version re-edited by the studio received highly positive feedback. However, Bong held final cut privileges and insisted on releasing his version. He reportedly assured the studio that his previous film, "Parasite," also had poor initial test screenings. But with "Parasite" costing only $10 million, the financial risk was nowhere near comparable, leaving Warner Bros. deeply worried about "Mickey 17."
(Image: Warner Bros. Pictures)
The report also highlighted other high-risk investments on Warner Bros.' upcoming slate, including "Sinners," an original action-thriller written and directed by "Black Panther" franchise director Ryan Coogler.
Before Warner Bros. secured the distribution rights, studios like Universal Pictures and Sony Pictures were interested in acquiring "Sinners." However, they backed out when Coogler's team demanded what they considered outrageous terms: a first-dollar gross deal (meaning he shares in box office revenue from day one, without waiting for the film to hit profitability), final cut, and ownership of the film's full copyright for 25 years after its release. De Luca and Abdy, however, agreed to the terms.
Steve Spira, Warner Bros.' veteran president of business affairs, strongly opposed this highly unusual deal, which reportedly sparked debate among the company's board members. Executives at rival studios allegedly felt De Luca and Abdy's move was a dereliction of duty, as their responsibility is to build the company's library, something impossible to do when you don't own the copyright to a film you produce.
"Sinners" also ran into budget overruns, though Coogler reportedly agreed to cover the excess with his own upfront and backend fees. For Warner Bros. to break even, the film needs to open to around $50-60 million domestically—a tall order for an original film with little buzz that is set to release next month. On a more positive note, sources say Coogler has been far more receptive to studio and test screening feedback than Bong Joon-ho.
(Image: Warner Bros. Pictures)
Another major production causing anxiety at Warner Bros. is Maggie Gyllenhaal's "Frankenstein" adaptation "The Bride." Gyllenhaal, an acclaimed actress-turned-director, previously helmed only one small-budget drama, "The Lost Daughter." While that film earned critical acclaim and three Oscar nominations, handing her a budget of over $100 million is seen as a massive gamble. An anonymous head of another studio commented, "In my opinion, giving her anything over $15 million to make this movie would be irresponsible."
Test screenings for "The Bride" have reportedly raised concerns, with the film being described as too "arthouse" and not a distinct enough horror film to attract the mass audience needed to justify its budget. Abdy is said to be facing significant challenges in keeping the film on track for its planned September 26 release.
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The ambitious Paul Thomas Anderson film "One Battle After Another," starring Leonardo DiCaprio, is another source of worry. While billed as Anderson's most commercial work to date, his filmography consists entirely of non-commercial dramas. With a budget of $150 million, it remains to be seen if he can deliver a profitable hit for Warner Bros. The studio's confidence largely rests on DiCaprio's star power, but even he has had films with lackluster box office results and is not a guaranteed success.
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De Luca and Abdy are known in the industry for being well-liked but also "overly generous." An anecdote recalls former Sony Pictures president Doug Belgrad complaining to "Spider-Man" producer Amy Pascal that De Luca consistently ignored his warnings about budget overruns. Pascal, who has had her own struggles with budgets, reportedly expressed her frustration, saying she had repeatedly told them to "act like adults" and plan accordingly, but to no avail.
Rumors have been swirling that Zaslav is looking to replace De Luca and Abdy, though a spokesperson for Zaslav has denied them. Still, the speculation persists. Puck News further reported that Zaslav is considering Peter Safran, the current co-head of DC Studios alongside James Gunn, to take over from the duo.
The hopes of nearly the entire studio now rest on Gunn and Safran's upcoming "Superman." If even that film fails to connect with audiences, Warner Bros. could once again be facing the prospect of being sold.
via： Puck News