Warner Bros. Film Slate Faces Over $800 Million in Projected 2026 Losses
New Skydance leadership scrutinizes expensive projects inherited from former Warner Bros. film chiefs Michael De Luca and Pamela Abdy.
The film slate left behind by former Warner Bros. Motion Picture Group co-chairs Michael De Luca and Pamela Abdy is projected to incur over $800 million in losses for 2026, according to industry sources. Skydance, the new owner, is now evaluating a slate of films that includes several high-budget projects that have raised concerns among its leadership.
Among the significant financial setbacks for 2026 is the film "Digger," which is expected to account for a $250 million write-off, and "The Bride," anticipated to lose over $100 million. The outgoing duo's spending habits have been described by sources as "beyond reckless."
Skydance's concerns extend to the 2027 slate, which features several costly productions. These include a Nancy Meyers romantic comedy, tentatively titled "Paris Paramount," budgeted at over $120 million and potentially becoming the most expensive rom-com ever made. A J.J. Abrams sci-fi tentpole has been postponed to 2027, and a Julia Roberts-Sam Esmail psychological thriller, "Panic Carefully," carries a $160 million budget.
Sources indicate that "The Great Beyond," an Abrams film initially slated for a November 2026 release, was not testing well and its delay to 2027 may be more than just a need for IMAX integration, as was suggested. The film "Panic Carefully," set for an April 9 release, is also a point of concern due to its substantial budget.
Netflix, which reportedly passed on "Digger," "The Bride," and "Paris Paramount," is reportedly hesitant to hire De Luca and Abdy, given their recent financial performance. This comes as sources suggest the former co-chairs are no longer being considered as a package deal, indicating a potential rift and a "blame game" beginning between them.
Skydance film co-heads Dana Goldberg and Josh Greenstein are now tasked with assessing the value and potential returns of these inherited films. The previous decision by Warner Bros. CEO David Zaslav to shelve "Coyote vs. Acme" in 2023 for a tax write-down has reportedly eroded goodwill within the creative community, making the current situation at Warner Bros. particularly sensitive.
Industry executives are reportedly questioning the significant budgets allocated to these films, particularly in the current era of cost-consciousness. Despite the challenges, sources acknowledge that Skydance paid for these films as part of its acquisition and must now determine their residual value across various distribution windows. The leadership faces the delicate task of managing these projects while navigating industry expectations and the legacy of previous studio decisions.