US Congressman Calls for Investigation Into WB Shelving Movies for Tax Incentive

Congressman Joaquin Castro is calling out Warner Bros. Discovery for shelving movies for tax breaks — and is asking for an investigation into the practice for being predatory and anti-competitive. On social media, Castro responded to the news that Warner Bros. had shelved the fully completed Coyote vs. Acme movie for tax write downs, writing in his post that the practice is like “burning down a building for the insurance money”. Warner Bros. announced the shelving of the film late last week. The studio has since put the film on the market for other distributors following backlash.

“The @WBD tactic of scrapping fully made films for tax breaks is predatory and anti-competitive,” Castro wrote. “As the Justice Department and @FTC revise their antitrust guidelines they should review this conduct. As someone remarked, it’s like burning down a building for the insurance money.”

What is Going On With Coyote vs. Acme?

Last week, Warner Bros, Pictures announced that they were shelving the completed Coyote vs. Acme, making it the third film in less than two years that Warner Bros. Discovery had shelved for a tax break, the previous two being Batgirl and Scoob! Holiday Haunt. One of the biggest differences between, Coyote vs. Acme and the previously shelved films, however, is that both Batgirl and Scoob! Holiday Haunt had been set for release on Max. Coyote vs. Acme had been set for a theatrical release, at one point getting a release date of July 21, 2023, before that date ultimately was given to Barbie.

“With the re-launch of Warner Bros. Pictures Animation in June, the studio has shifted its global strategy to focus on theatrical releases,” a WB Motion Picture Group spokesperson said in a statement. “With this new direction, we have made the difficult decision not to move forward with Coyote vs Acme. We have tremendous respect for the filmmakers, casts, and crew, and are grateful for their contributions to the film.”

The announcement drew immediate fan backlash and, on Monday, the studio reversed course and allowed the film to be shopped to other distributors with screenings for potential buyers, including Amazon Prime Video, Apple, and Netflix, set to take place sometime this week.

What Is Coyote vs. Acme About?

In Coyote vs. Acme, after every ACME Corporation product backfired on Wile E. Coyote, in his pursuit of the Road Runner, he hires an equally unlucky human attorney to sue the company. When Wile E.’s lawyer finds out that his former law firm’s intimidating boss is ACME’s CEO, he teams up with Wile E. to win the court case against him. The film was to be based on the fictional The New Yorker article “Coyote v. Acme” by author Ian Frazier, which was published in 1990. 

The film stars John Cena (Peacemaker), Lana Condor (To All the Boys I’ve Loved Before), and Will Forte (Saturday Night Live). DC Studios co-head James Gunn (The Suicide Squad) co-wrote the story and serves as producer.