The China Mail - Barbie sequel negotiations stall over reported $25 million pay packages

Margot Robbie, Ryan Gosling and Greta Gerwig sought $25 million apiece — plus bigger profit shares — for "Barbie 2," leaving Skydance CEO David Ellison to resolve a contract standoff as his Hollywood empire grapples with massive debt, according to a report. Talks collapsed under Warner Bros.’ previous management when the creative team pushed for more lucrative deals following the original film’s success, the report said.

Gerwig’s co-screenwriter, Noah Baumbach, would reportedly share a writing fee with the director, under the "Barbie 2" proposal. Former WBD CEO David Zaslav balked at the proposed profit-sharing terms before Ellison bought his company, according to published reports.

The talks were reportedly led by powerful CAA agent Bryan Lourd, who represents the creative team. Ellison’s Skydance completed its $111 billion takeover of Warner Bros. Discovery on Oct. 6.

Two sources cited by published reports said Ellison, Lourd and Kreiz — the former CEO of Barbie maker Mattel — hope to reach an agreement by year’s end. The earlier negotiations unfolded as Warner Bros. faced a deadline to renew its licensing rights to the Barbie franchise, the report said.

Gerwig and Baumbach previously pitched a sequel to Warner Bros. film chiefs Michael De Luca and Pamela Abdy, who were ousted just days before Skydance completed its takeover in October. The reported dispute with the A-listers comes as Skydance looks to expand its movie slate while cutting billions in costs across the newly merged company.

Skydance faces more than $6 billion in interest expenses in 2027 on roughly $80 billion in net debt. The company on Monday reported about $10 billion in cash on hand following the takeover and related financing activity.

Skydance has pledged to spend more than $30 billion annually on content, surpassing the individual budgets of Netflix and Disney. Ellison has targeted at least $6 billion in annual cost savings over the next three years as Skydance restructures its newly acquired operations.

In a Nov. 9 shareholder letter, Skydance identified corporate overhead, offices and facilities as its biggest cost-cutting target, with at least $2.2 billion in projected annual savings. The media behemoth is also targeting at least $1.4 billion in annual savings each from technology and from outside vendors, plus another $1 billion from marketing and advertising.

More than 20 belt-tightening initiatives are underway, with Skydance projecting $1.8 billion in annualized savings by the end of the first year. Skydance’s review of WBD’s books has uncovered unexpected luxury expenses, the report said.

Two sources told the publication that WBD’s management spent "tens of millions" on hospitality, including meals, travel and gifts. The report also cited receipts for sandwiches and green juices purchased at Erewhon, an upscale Los Angeles grocery chain.

Erewhon is known for its eye-popping prices, with a turkey avocado sandwich listed at $21.75, a 16-ounce green juice costing $16.25 and some smoothies priced at $20, according to current Uber Eats delivery menus. A sandwich and juice alone would set a customer back $38 before taxes and delivery fees.

Skydance is also said to be reviewing its financial commitments to major sporting events, including the Olympics, the report said. Layoffs are expected by the end of 2026 and into the first quarter of 2027, according to the report.

The cost-cutting drive has also prompted buyouts at CNN and CBS News, where veteran employees — including some whom managers had hoped to retain — are taking exit packages, the report said. Skydance declined to comment.

A CAA spokesperson declined to comment. Lourd could not immediately be reached.

R.Yeung--ThChM