Village Roadshow Pictures Files for Bankruptcy

Village Roadshow Entertainment Group, the U.S. film producer behind iconic franchises such as The Matrix, Ocean’s Eleven, and The Joker, is “open to all bids” for its film library, a company attorney said on Tuesday. The announcement came just a day after the Los Angeles-based studio filed for Chapter 11 bankruptcy.

Under a tentative agreement, Village Roadshow plans to sell its film library to investment firm Content Partners for $365 million, although the deal is subject to overbids. Attorney Justin Bernbrock told U.S. Bankruptcy Judge Thomas Horan in Delaware that the company aims to hold an auction in May, ahead of seeking court approval for any sale. Village Roadshow currently carries $393 million in secured debt.

Generating about $50 million in annual revenue, the film library is the company’s most valuable asset. It includes rights to 108 films, such as The Lego Movie and The Great Gatsby, which collectively have grossed $19 billion worldwide and won 19 Academy Awards, according to court filings.

An attorney for Alcon Entertainment indicated that it may bid for the catalog, and Bernbrock noted Warner Bros could also make an offer. Warner Bros co-produced most of Village Roadshow’s titles, but a breakdown in their long-standing collaboration played a key role in driving Village Roadshow into bankruptcy. The rift was exacerbated by a 2022 lawsuit in which Village Roadshow accused Warner Bros of breaching a co-production agreement by releasing The Matrix Resurrections simultaneously in theaters and on HBO Max, allegedly to boost HBO Max subscriptions.

That dispute has strained relations between the two companies and saddled Village Roadshow with $18 million in unpaid legal bills. A potentially unfavorable ruling could further damage the studio’s finances. Against this backdrop, the upcoming auction will determine the future of these celebrated movie rights and whether Village Roadshow can emerge from bankruptcy on firmer ground.