The release of Coyote vs. Acme movie was originally cancelled by Warner Bros. in November 2023 for a tax write-off despite being complete. However, the movie started getting shopped to potential distributors after public backlash. By April 2024, it seemed the studio was unable to come to agreeable with potential buyers, leaving the movie shelved for the foreseeable future. However, it had not been outright cancelled despite a lack of news about its fate.

Now, Deadline reports that Warner Bros. is in talks to sell Coyote vs. Acme to distributor Ketchup Entertainment for around $50 million. The distribution and financier company previously bought The Day the Earth Blew Up: A Looney Tunes Movie, which was released in theaters on March 14, 2025. According to the report, if a deal is reached between both parties, Coyote vs. Acme could see a 2026 theatrical release, saving the film from its planned cancellation.

Coyote vs. Acme was originally scheduled to be released in theaters on July 21, 2023 before it was removed from Warner Bros.' schedule in April 2022.

What Coyote vs. Acme's New Deal Could Mean For The Movie

It Has A Strong Chance Of Getting Saved

Coyote vs. Acme was expected to go the way of other Warner Bros. projects, such as the shelved Batgirl movie and Scoob: Holiday Haunt, both of which were finished before the studio pulled the plug. These behind-the-scenes changes came during the company's merger with Discovery, which saw many cost-cutting measures take effect. However, the Looney Tunes film managed to escape its fate, with this latest news signaling it might just get its originally planned theatrical release after all.

Warner Bros. has continued to see major shifts behind-the-scenes, such as a February 2025 report claiming Warner Bros. Games has Max removed all original Looney Tunes shorts from their platform as well, despite the release of their latest movie in the franchise. However, if Ketchup Entertainment can strike a deal with the studio to secure Coyote vs. Acme's future, it will be at least one production saved among the many ongoing changes at the company.

Our Take On Coyote vs. Acme Possibly Getting Released

A Hopeful Sign For Looney Tunes' Future

Unfortunately, The Day the Earth Blew Up hasn't been a financial success, earning just $5.6 million against a $15 million budget as of writing. However, the level of public surrounding Coyote vs. Acme means the movie could be much more successful, especially with big names like Will Forte and John Cena attached. If negotiations are reached and the film does get a theatrical release, it might be a positive sign for the future of Looney Tunes as a whole going forward.

Source: Deadline