Warner Bros. Discovery saved over $2 billion as a result of the Batgirl movie cancelation and other cost-cutting measures that have resulted from the merger of the two companies. In late August, the newly-merged conglomerate stunned the entertainment world when they decided to completely ax the estimated $90 million Batgirl movie which was intended for a release on HBO Max. Under directors Adil El Arbi and Bilall Fallah, the DC movie had even finished filming with Leslie Grace as Batgirl, J.K. Simmons as James Gordon, Brendan Fraser as Firefly, and Michael Keaton as Batman.
Though the Batgirl movie was the most high-profile cancelation, it wasn't the end of Warner Bros. Discovery's cost-cutting measures. Another project, the animated Scoob!: Holiday Haunt which was nearly finished, was also canceled before its release and will likely never see the light of day. A few DC projects in development for HBO Max were axed, including Greg Berlanti and Kevin Smith's DC series Strange Adventures and the live-action Wonder Twins movie. The company also began quietly removing existing titles from HBO Max, including Seth Rogen's An American Pickle and Charm City Kings. The moves are all part of Warner Bros. Discovery's commitment to cut $3 billion in costs and rein in content expenses.
Now, it's been revealed just how much Warner Bros. Discovery stands to gain from canceling the Batgirl movie and other projects. According to the company's SEC filing (via IndieWire), it wrote off over $2 billion worth of canceled content during its fiscal third quarter. The company said its "restructuring efforts are ongoing" and could continue until "the end of 2024." Read the company's comment from their filing below:
While the Company’s restructuring efforts are ongoing, including the strategic analysis of content programming which could result in additional impairments above the estimate provided above, the restructuring initiatives are expected to be substantially completed by the end of 2024.
Was The Batgirl Cancellation Worth It?
In light of the company's SEC filing, Zaslav's decision to cancel Batgirl is beginning to make more sense from a business perspective, but it remains disheartening. Besides, an equally plausible argument could be made that instead of being used as a tax write-off, a buzzy title like Batgirl could have been used to attract customers to HBO Max. This is not to mention the PR firestorm that started as a result of the cancelation as DC fans began pressuring Warner Bros. Discovery for the film's release on social media.
It's also important to mention that none of WBD's drastic cost-cutting measures have managed to turn their struggling stock around. This, in all likelihood, means that their cost-cutting is far from finished, as they are still short of their $3 billion goal and their statement indicates their efforts will continue until the end of 2024. Ever since Batgirl was canceled, there has been a palpable fear among DC fans that more anticipated projects could be next. Unfortunately, these fears could be realized in the coming years until WBD's restructuring initiatives are completed.
Source: IndieWire
