U.S. film producer Village Roadshow Entertainment Group announced its willingness to entertain offers for its film library, featuring popular titles such as The Matrix, Ocean’s Eleven, and The Joker, during a court hearing in New York on Tuesday following a bankruptcy filing.
Village Roadshow, based in Los Angeles, filed for Chapter 11 bankruptcy protection with a proposed deal to sell its film collection to investment firm Content Partners for $365 million. The company anticipates conducting an auction in May to consider competing bids before seeking court approval for the sale, stated the company's attorney Justin Bernbrock to U.S. Bankruptcy Judge Thomas Horan in Delaware.
Having accrued $393 million in secured debt, Village Roadshow's film catalog, its most valuable asset in bankruptcy, yields $50 million in annual revenue. The library encompasses rights to 108 films, including The Matrix trilogy, Ocean’s series, The Lego Movie, and The Great Gatsby, which collectively amassed $19 billion in box office revenue and claimed 19 Academy Awards.
Alcon Entertainment expressed interest in bidding for the film collection, while Bernbrock highlighted the potential contribution of Warner Bros as another contender for Village Roadshow's film rights.
Most of Village Roadshow’s films were co-produced with Warner Bros, and the dissolution of that partnership partly led to the company’s insolvency, as noted in court documents.
The dispute between Village Roadshow and Warner Bros stemmed from the simultaneous release of "The Matrix Resurrections" in theaters and on HBO Max, allegedly breaching a co-production agreement, aiming to boost streaming platform subscribers, resulting in a legal stalemate and substantial legal expenses for Village Roadshow.
Recently, an arbitrator ruled in favor of Warner Bros in the disagreement over the release strategy of The Matrix Resurrections. Warner Bros emphasized its pivotal role as the creative force behind the jointly produced movies, with Village Roadshow providing financing and sharing film revenues.
Beyond the rift with Warner Bros, Village Roadshow faced hurdles such as a pandemic-affected cinema industry and the failed endeavor to create its content post a 2017 private equity acquisition.
Village Roadshow’s studio division has unresolved debts to writers, tarnishing its standing and leading the Writers' Guild to blacklist the company in December 2024.