A Delaware bankruptcy court has ruled in favor of Alcon Entertainment, granting it key sequel and remake rights to several major film franchises previously linked to Warner Bros.
The decision, issued after a heated auction and subsequent appeal, impacts future projects under Village Roadshow’s former film portfolio, including The Matrix and Ocean’s Eleven.
The ruling follows months of legal disputes stemming from Village Roadshow’s bankruptcy filing earlier this year.
Warner Bros., which bid aggressively for these rights, now faces mandatory collaboration with Alcon for upcoming franchise projects.
How Warner Bros Lost the Bid
In May 2025, a high-stakes auction was held at a Los Angeles law firm to determine control over Village Roadshow’s derivative rights—essential for producing sequels and remakes.
According to Reuters, Warner Bros and Alcon Entertainment engaged in ten competitive bidding rounds.
Warner Bros ultimately capped its offer below Alcon’s winning bid of $18.5 million.
Afterward, Warner Bros attempted to submit a revised $19.5 million bid just before an October hearing, but the Delaware bankruptcy court rejected it as untimely.
What Analysts Are Saying
Entertainment analysts described the ruling as “a defining moment” in the control of legacy franchises.
“This outcome reshapes Hollywood’s franchise landscape,” said media lawyer Karen Liu, who specializes in entertainment contracts.
She added, “Alcon’s win ensures it holds creative leverage, forcing Warner Bros into partnership rather than dominance.”
Neither Warner Bros nor Alcon Entertainment issued immediate public statements, but internal sources suggest both sides are exploring new collaboration frameworks.
What This Means for Future Films
The court’s decision means Warner Bros will now share sequel and remake development with Alcon.
The first major collaboration is expected to be Practical Magic 2, currently in early pre-production.
This outcome follows earlier tensions between Warner Bros and Village Roadshow over The Matrix Resurrections, which Warner released simultaneously in theaters and on HBO Max—sparking the lawsuit that ultimately led to Village Roadshow’s financial decline.
Analysts note that the ruling cements Alcon’s control over The Matrix rights, significantly reshaping Warner’s future franchise planning.
Possible Appeal and Upcoming Projects
Warner Bros is reportedly evaluating an appeal of the Delaware court’s decision, though legal experts say chances of reversal are limited.
Meanwhile, Alcon is expected to begin negotiations on several new projects under its expanded portfolio.
The two companies will also collaborate on multiple existing franchises, including Ocean’s Eleven and Practical Magic 2.
Further updates from the court and studios are anticipated by early 2026.
Source
Reuters – “Warner Bros Loses Film Rights Auction to Alcon Entertainment”
The Hollywood Reporter – “Village Roadshow Bankruptcy Auction Results”
Variety – “How Alcon Won The Matrix Franchise Rights”
