Village Roadshow Files for Bankruptcy, Citing Warner Bros. Dispute as ‘Irreparable’
Village Roadshow, the film production and financing powerhouse behind The Matrix, Ocean’s Eleven, Joker, The Lego Movie, and Wonka, has filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Monday.
💥 The filing marks the end of a decades-long relationship with Warner Bros., which Village Roadshow blames for its financial collapse.
📌 The company claims that its legal battle with WB over The Matrix Resurrections was the breaking point, costing them $18 million in legal fees and severing what was once its most lucrative business partnership.
"Even if the WB Arbitration is resolved, the Company believes that it has irreparably decimated the working relationship between WB and the Company," the filing states.
💰 Assets: Estimated between $100 million and $500 million
📉 Liabilities: Between $500 million and $1 billion
🎥 The Matrix Resurrections controversy started when Warner Bros. simultaneously released the film in theaters and on Max, violating what Village Roadshow says was an exclusive theatrical release agreement.
⚖️ Village Roadshow sued WB for breach of contract, arguing that the move:
✔️ Diminished the film’s box office revenue
✔️ Destroyed Village Roadshow’s potential earnings from future co-productions
✔️ Severed a business relationship that had fueled their financial success for decades
🔥 "The WB arbitration has eradicated the Company’s potential income stream," the filing adds.
💸 The company's most valuable assets are its film library, with CP Ventura LLC emerging as a stalking horse bidder at $365 million.
🚨 The filing also reveals:
✔️ CEO Steve Mosko stepped down earlier this year
✔️ Multiple rounds of layoffs left the company with a skeleton staff
✔️ The WGA added Village Roadshow to its strike list last year for failing to pay writers
💰 Goldman Sachs was enlisted to help sell the company last year, but the ongoing arbitration with WB derailed potential deals.
🎞️ While the company still retains ownership stakes in major Hollywood franchises, its ability to capitalize on future projects appears doomed.
⚠️ The filing suggests that unless the arbitration with Warner Bros. is settled, Village Roadshow’s business model is unsustainable.
🎬 The future of its film library and remaining assets now depends on the bankruptcy court and potential buyers.
This post was published on March 18, 2025 4:03 pm
