Coyote vs. Acme has been saved from the tax write-off oblivion that is the Warner Bros. vault. Independent distributor Ketchup Entertainment, who recently released the critically acclaimed Looney Tunes film The Day the Earth Blew Up, has acquired the film for approximately $50 million. They plan to release it in theaters in 2026.

Wile E. Coyote chases the Road Runner in a Looney Tunes cartoon – YouTube, IK Films
For Looney Tunes fans, this is a rare victory, especially given Warner Bros.’ increasingly frustrating treatment of its animated legacy.
A Shelved Film Finds New Life
The shelving of Coyote vs. Acme was part of a pattern at Warner Bros., where completed or nearly finished films—like Batgirl and Scoob! Holiday Haunt—were scrapped for financial reasons. The live-action/animation hybrid, starring the ever-determined Wile E. Coyote in a legal battle against the Acme Corporation, was completed in 2023 and reportedly tested well with audiences. But instead of releasing the film, Warner Bros. shelved it for a $30 million tax write-off, sparking backlash from filmmakers, animation fans, and industry professionals alike.

Daffy Duck and Porky Pig in the Looney Tunes movie The Day The Earth Blew Up – YouTube, WB Kids
Many saw it as a sign that Warner Bros. had little respect for animation, regardless of quality. Directors, writers, and animators criticized the move, calling it a betrayal of the hard work put into the film. Even within Warner Bros., there was internal pushback. But despite efforts to shop the film to other distributors, the studio initially refused to sell it.
That is, until Ketchup Entertainment stepped in and struck a deal.
Ketchup Entertainment: A New Hope for Looney Tunes?
Ketchup Entertainment may not be well-known, but they’ve handled several niche films, including the Hellboy reboot and the Hunger Games parody, The Starving Games. The company also recently released The Day the Earth Blew Up, the first fully animated Looney Tunes feature film in decades. Their decision to save Coyote vs. Acme suggests a commitment to keeping these beloved characters alive on the big screen and bringing quality animation to audiences.

A screenshot from the trailer for the Looney Tunes movie The Day The Earth Blew Up – YouTube, WB Kids
This acquisition could signal a shift in how Looney Tunes content is handled going forward. If Coyote vs. Acme performs well, it might encourage more distributors to step in and save abandoned projects. For longtime fans who have watched Warner Bros. repeatedly sideline the franchise, it’s a promising development that could lead to a renewed appreciation for classic animated properties.
Warner Bros.’ Troubled Relationship with Looney Tunes
Warner Bros.’ mismanagement of Looney Tunes extends beyond just Coyote vs. Acme. The company recently removed a large selection of classic Looney Tunes shorts from its streaming platform, Max, without warning or explanation. These shorts are what many call the foundation of the franchise, beloved by generations, yet they’ve been treated as disposable content.

Draftee Daffy (1945), Warner Bros. Animation
The decision to bury Coyote vs. Acme felt like another nail in the coffin for longtime Looney Tunes fans. But this unexpected rescue proves that demand for these characters hasn’t faded. If anything, it’s stronger than ever, showing that audiences still care about animation done right.
A Victory for Animation Fans
The Coyote vs. Acme saga is more than just a quirky legal comedy starring a beloved cartoon character. It’s a symbol of the ongoing struggle between corporate profit-driven decisions and the creative value of animation as an art form.

The WB logo before a Looney Tunes cartoon – YouTube, Public Domain Remastered
For now, fans can celebrate that Wile E. Coyote will finally get his day in court—and on the big screen, where he belongs.
Are you happy that Coyote vs. Acme was saved? Sound off in the comments and let us know your thoughts!
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This movie has to have that Chuck Jones-style absurdist humor or I’m out forever. On WBD and Ketchup Entertainment. Not that later Roadrunner and Coyote shorts weren’t good, they just lacked Chuck’s distinct brand of humor and zaniness after he left to go work for MGM and started making Tom and Jerry cartoons (my favorite era of theirs).