Warner Bros. Faces Barbie Box Office Deadline

Warner Bros. faces a critical December deadline to finalize a "Barbie" sequel deal, as rights for the franchise will revert to Mattel if an agreement is not reached with principal talent. The studio's initial blockbuster success with the $1.5 billion-grossing film prompted a push for a sequel, but negotiations have been ongoing for months without a resolution.

Discussions involve writer-director Greta Gerwig and stars Margot Robbie and Ryan Gosling, with offers including profit participation and upfront raises, such as $20 million for Mr. Gosling. However, Warner Bros. Discovery CEO David Zaslav reportedly found the proposed terms too generous, leading to a stalemate. A studio spokeswoman placed the onus on talent representatives for not countering a previous offer.

This situation arises as Warner Bros. seeks to solidify its franchise strategy amidst recent box office underperformance and pending merger challenges. Mattel, under CEO Ynon Kreiz, has become more assertive in Hollywood dealmaking, emphasizing a desire to avoid project delays. If negotiations fail, Mattel would need to restart development for any "Barbie" movie independently.