Village Roadshow has reached a settlement with Warner Bros. to pay $57 million to the studio after an arbitrator ruled against them in a dispute over the financing and distribution agreement of the 2021 film “The Matrix Resurrections.”
In 2022, Warner Bros. filed arbitration demands to Village Roadshow over “Matrix Resurrections” and other IP the studio shared the rights to with Warner Bros.
Roadshow, which was struggling financially in the aftermath of the COVID pandemic and with the failing launch of its new television production division and the poor box office of “Matrix Resurrections,” filed a lawsuit against Warner, accusing the studio of breach of contract over its decision to release “Resurrections” day-and-date in theaters and on HBO Max.
Village Roadshow also alleged that it was shut out of co-financing sequels and remakes to key franchises it shared the rights to, including the Timothée Chalamet musical “Wonka.”
But when the lawsuit was moved to arbitration, a ruling came down in favor of Warner Bros., as the arbiter found that Roadshow had breached the film’s co-ownership and distribution agreements. Village Roadshow was ordered to pay Warner $125 million in exchange for a 50% share of profits from “Matrix Resurrections” after Warner recouped its marketing and distribution costs. That ruling played a factor in Village Roadshow’s bankruptcy last year.
In the wake of that bankruptcy, Warner filed a claim for the $125 million payment. The $57 million paid by Village Roadshow in the settlement is what remains of the $125 million payment minus what Roadshow would have received through the 50% profit share, which it no longer can acquire.
As for Village Roadshow’s catalog, Warner attempted to buy the derivative rights in bankruptcy court, but lost out to an $18.5 million offer from Alcon, which had previously purchased Roadshow’s catalog for $417.5 million. The derivative rights grant Alcon the right to produce sequels based on Roadshow’s catalog, including the 1998 fantasy film “Practical Magic,” which starred Nicole Kidman and Sandra Bullock and which is getting a sequel distributed by Warner this September.
UPDATE: 4 PM PT — The story has been updated with further clarification on the terms of the settlement.
The post Warner Bros. Settles Village Roadshow ‘Matrix Resurrections’ Legal Dispute With $57 Million Win appeared first on TheWrap.
