Warner Bros. Discovery has reached a deal with Ketchup Entertainment to sell the global distribution rights of its embattled Looney Tunes movie, "Coyote vs. Acme". According to Deadline, the production studio acquired the rights for a reported $50 million and plans to release the feature in 2026. This move marks a significant turnaround for the film, which was previously canned in 2023 to secure a $30 million tax write-off.

The deal comes as a surprise, given Warner Bros.' previous reluctance to sell the rights to other major streaming platforms and studios, including Amazon, Netflix, and Paramount. The exact reasons behind the studio's change of heart remain unclear, but Ketchup Entertainment's CEO Gareth West expressed enthusiasm about bringing the film to theaters. "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," West said in a statement.

The film, directed by Dave Green, was nearly completed when it was shelved in 2023. Despite its troubled production history, "Coyote vs. Acme" has garnered significant attention online, with fans passionately calling for its release. If successfully marketed, the film could potentially resonate with both longtime Looney Tunes fans and newcomers alike, leading to a successful theatrical run.

However, the success of "Coyote vs. Acme" is far from guaranteed. Ketchup Entertainment's previous Looney Tunes acquisition, "The Day The Earth Blew Up: A Looney Tunes Movie", performed poorly at the box office. The studio's ability to revitalize the franchise and attract a new audience will be crucial in determining the film's commercial viability.

The deal also raises questions about Warner Bros.' strategy regarding its Looney Tunes intellectual property. The studio has been keen on exploiting the franchise's potential, but the reasons behind its decision to sell the rights to Ketchup Entertainment remain unclear. As the entertainment landscape continues to evolve, the fate of "Coyote vs. Acme" will be closely watched by industry insiders and fans alike.

In conclusion, the sale of "Coyote vs. Acme" distribution rights to Ketchup Entertainment marks a significant development in the film's tumultuous history. As the production studio prepares for a 2026 release, the success of the film will depend on its ability to tap into the nostalgia of Looney Tunes fans while introducing the beloved characters to a new generation. The outcome will have important implications for the entertainment industry, shedding light on the value of nostalgic IP and the role of studios in shaping the cinematic landscape.