On November 5, 2025, Judge Thomas M. Horan rejected Warner Bros. Discovery’s last-minute $19.5 million bid for The Matrix and Ocean’s sequel rights.
Alcon Media Group won with $18.5 million instead. The judge criticized Warner’s timing as “engineered to run down the clock,” stating that the studio had made strategic mistakes.
This decision could change Hollywood’s power structure for decades.
Billions at Stake
The Matrix franchise earned $1.79 billion worldwide across four films. Ocean’s films made $1.42 billion. Together, these franchises generated over $3.2 billion in ticket sales.
Village Roadshow’s entire 108-film library has grossed a total of $19 billion and still earns $50 million annually.
These franchises are money machines through sequels, merchandise, streaming, and fan loyalty.
Partnership Collapse
Village Roadshow and Warner Bros. worked together for 25 years on 89 blockbuster films with no legal fights.
Founded in 1997, Village Roadshow provided billions to finance major projects. The partnership created iconic franchises and seemed perfect.
However, by 2022, it had fallen apart into lawsuits, fights over money, and ultimately, bankruptcy.
Pandemic Fracture
The trouble started when Warner Bros. released The Matrix Resurrections on HBO Max and in theaters simultaneously on December 25, 2021.
Village Roadshow sued, claiming Warner hurt box office sales to gain streaming subscribers.
The film made only $148.9 million against a $300 million budget and marketing spend. Warner said Village refused to pay its $107 million share of costs.
$125 Million Reversal
Village Roadshow’s lawsuit backfired badly. An arbitrator ruled that Warner Bros. won and was entitled to $125 million.
Village lost the case and spent $18 million on legal fees.
This defeat, combined with Warner’s refusal to include Village in future projects, led Village Roadshow to file for bankruptcy on March 17, 2025, owing massive debts.
Regional Fallout
The bankruptcy hit production hubs worldwide.
In Australia, the parent company sued to remove Village Roadshow’s name and logo from the bankrupt U.S. subsidiary. In Los Angeles, the company cut staff from 45 to 11 people.
The Writers Guild blacklisted Village Roadshow in December 2024 for unpaid debts, damaging its reputation industry-wide.
Creative Casualties
Filmmakers and producers working with Village Roadshow got stuck in limbo.
Warner Bros. told them: “We won’t work on any project where Village Roadshow is a partner,” unless Village gave up ownership rights.
This has frozen dozens of potential sequels and spin-offs tied to the Village’s 89 films, costing Hollywood billions in unrealized projects.
Auction Drama
Village Roadshow’s film library was put up for auction. Content Partners bid $365 million to start.
Alcon Entertainment, known for films such as Blade Runner 2049 and The Blind Side, acquired the entire 108-film library for $417.5 million in June 2025.
Sequel rights sold separately: Alcon won at $18.5 million after ten bidding rounds, while Warner stopped at $17.5 million.
Industry Tremors
The bankruptcy revealed problems for independent film financiers. Studios now prioritize streaming subscribers over the theater box office.
Village Roadshow spent $47.5 million developing 233 films and shows, but produced only six profitable ones since 2018.
Simultaneous theater-streaming releases hurt co-financing partners who depend on traditional box office windows, raising questions about studio partnerships in the streaming era.
Practical Magic 2
The ruling immediately affects Practical Magic 2, a sequel to the 1998 film with Sandra Bullock and Nicole Kidman.
Filming began in July 2025 at Warner Bros. Studios in England for a September 2026 release. Warner produces the film while Alcon holds sequel rights and approval authority.
This unusual partnership tests whether two rival companies can work together successfully.
Warner’s Regret
Warner Bros. made a big mistake. On October 19, 2025—the day before the hearing—Warner suddenly bid $19.5 million, six months after the May auction ended.
The late bid showed that Warner underestimated the value of the sequel rights when it stopped at $17.5 million earlier.
Judge Horan rejected the desperate last-minute offer as unfair timing to the court.
Alcon Ascendant
Alcon Media Group, co-founded by Princeton classmates Andrew Kosove and Broderick Johnson in 1997 with backing from FedEx founder Frederick W. Smith, now owns one of the largest independent film libraries in the world.
Alcon succeeded with films like The Blind Side ($309 million) and Blade Runner 2049. Now Alcon controls The Matrix, Ocean’s, Mad Max, and Practical Magic franchises.
Co-Financing Complications
Warner Bros. keeps theatrical distribution rights but must now partner with Alcon on any sequels or remakes.
Alcon holds derivative rights, giving it approval authority and profit participation. This forced partnership mirrors the tensions that led to Warner’s breakdown in its relationship with Village Roadshow over sequel rights and co-financing obligations.
Industry experts question whether Warner and Alcon can work together better than Warner and Village did.
Appeal Uncertainty
Warner Bros. says it’s “considering an appeal” of the ruling, which could delay Practical Magic 2’s September 2026 release.
However, overturning bankruptcy court asset sales is very difficult. Warner must prove the judge made a serious mistake, a high legal bar.
Even a successful appeal would only send the case back for reconsideration, prolonging uncertainty for everyone.
Franchise Futures
Can The Matrix franchise, which grossed $1.79 billion across four films, succeed under this awkward partnership?
Will Alcon greenlight ambitious sequels, or will disagreements stop projects? This case shows how bankruptcy courts redistribute blockbuster franchises when studio partnerships collapse, reshaping Hollywood’s power structure.
For fans hoping for Neo’s return or Ocean’s next heist, success depends on whether Warner and Alcon can set aside courtroom battles.
