'Barbie' Sequel Could be Scrapped After Financial Agreement Failure

After a report from The New York Times revealed that a sequel to Barbie may ultimately not happen, new information has been revealed by Variety, indicating that a lack of agreement could keep the project from moving forward.

Sources interviewed by Variety revealed that Warner Bros. made as many as six different offers to the film's core team—Greta Gerwig, Noah Baumbach, Margot Robbie and Ryan Gosling—all of which were rejected.

The latest recent offer was described by one source as the biggest Warner has ever made to a production team and its stars, with one source saying it was "life-changing money." Another source pushed back on that claim, saying the package had a high overall value, but the individual payouts would not be all that large.

As previously reported, if Warner is unable to begin production on the feature by December, the rights will revert to Mattel, which owns the brand. However, it will not be possible to use the universe created by Gerwig to make the sequel if that happens.

According to sources, the financial demands from Robbie, Gosling, Gerwig and Baumbach would be considerable. They would include increases to their upfront fixed fees and generous additions to their profit participation. By all indications, Gosling is asking for US$ 20 million to return for the sequel.

One source said the creative team is satisfied with the initial salaries being offered, but less happy with the terms for sharing in future profits. Another source disputed the accuracy of both points.

However, no one besides Zaslav—according to some —is questioning whether this team is worth the investment. Another source familiar with the negotiations stated categorically that the sequel will not get off the ground unless Warner Bros. changes its stance.

“How could it not be in WBD shareholders' interest to have a sequel to the biggest film in the studio's history?” the source asked. Many influential industry professionals were shocked by the negative image created by Zaslav's attitude: he, who stands to profit hundreds of millions of dollars if Paramount's acquisition of Warner Bros. goes through, would be blocking a potentially billion-dollar sequel over compensation issues.

Some rival executives interviewed by Variety reportedly said this is "classic Zas," recalling some questionable decisions by Warner CEO, such as canceling Batgirl and Coyote vs. Acme, the latter of which was eventually sold to another studio and has been well received by critics.

Barbie's future at Warner Bros. may find an unexpected savior in David Ellison if he wins the battle for the company. He could reactivate Mattel's rights and bring the creative team back to the project. "I bet that would be the first deal he'd close," said one source.