Annapurna Pictures, the boutique film and TV studio started by Oracle scion Megan Ellison, has run into financial difficulties that on Tuesday resulted in the exit of its film division head and the announced jettisoning of two upcoming films with marquee talent, multiple individuals told TheWrap.
Ellison is “reevaluating” the studio’s film division and is expected to take a more active role in day-to-day development and production after a rocky 18 months that included Kathryn Bigelow’s “Detroit” and the modest indie hit “Sorry to Bother You,” one insider said.
According to at least two individuals close to Annapurna, Ellison’s father, Oracle co-founder Larry Ellison, is balking at any further investment in the studio after an initial outlay by him and his daughter of more than $200 million.
“These are unfounded rumors. Everything is business as usual,” a spokesperson for Annapurna told TheWrap. Larry Ellison did not immediately respond to a request for comment.
The new developments, including Chelsea Barnard’s exit as president of film, come at least three months after the departure of company president Marc Weinstock and CFO Josh Small. Many in Hollywood considered their sudden exits a warning sign of internal troubles.
The studio has produced or co-produced many prestige projects that have won accolades — from Paul Thomas Anderson’s “The Master” to Kathryn Bigelow’s “Zero Dark Thirty” to David O. Russell’s “American Hustle” — but insiders say that Ellison has overspent on many of them.
The challenges have been exacerbated by Annapurna’s decision to launch its own distribution division last year instead of working with the majors as co-producers and distribution partners and spreading the risk.
“Detroit,” a prestige 2017 project by Oscar-winning director Kathryn Bigelow, cost $40 million, but made only $16 million at the box office and lost the company tens of millions of dollars after a major marketing spend, according to two knowledgeable individuals.
The Western drama “The Sisters Brothers,” starring John C. Reilly and Joaquin Phoenix, was released last month and has so far taken in just $730,000, according to BoxOfficeMojo. An insider said the studio paid roughly one-fifth of the film’s $38 million budget — at least $7.5 million — for North American rights, not including marketing costs.
The studio’s anticipated December release “Vice,” about Dick Cheney, cost a bloated $60 million to produce. Knowledgeable sources said the movie should have been made for half that amount. The studio declined to comment on the budget.
“There is a financial issue going on,” an individual with knowledge of the studio told TheWrap. “Her dad has put a lot of money into the company and I don’t think he wants to support her behavior and what’s been going on. There are restraints — the money is not flowing.”
On Tuesday, the company abruptly announced it was unloading a star-studded Jay Roach movie about Fox News founder Roger Ailes that was three weeks away from starting production, as well as Jennifer Lopez’s exotic dancer film “The Hustlers at Scores,” the latter picked up by STX Films.
An insider told TheWrap that there were budget issues involving the Roger Ailes film, but another individual with knowledge of the project said that the company had approved a $35 million budget just one week ago. The film, which Canadian-based Bron Studios is expected to co-finance, will star John Lithgow as Ailes as well as Charlize Theron and Margot Robbie.
One insider familiar with Annapurna’s operations said that Ellison is focused on making passion projects without regard to the cost.
“She makes bad decisions,” the individual said. “She wanted to chase all these expensive movies that weren’t going to make money, and she said, ‘I don’t care whether they make money.’ That’s not how you run a company.”
Annapurna got into distribution in January of 2017 — at the time, the company was planning to become a full-fledged studio after six years focused solely on production.
Weinstock and Small departed over the summer, the latter to join Jason Blum’s Blumhouse. An insider said, “When the president and CFO leave at the same time… it’s not a good sign of what’s ahead.”
Another Annapurna insider insisted that the company didn’t have financial troubles and that Ellison is confident about her marketing and distribution teams despite an acknowledgement that the film division wasn’t working.
“I don’t think she’s going to shut down production,” the first insider said. “She’s going to slope it way back down.”
One bright spot in Annapurna’s future is the marketing and distribution deal announced earlier this year with MGM, which includes the North American rights to the eagerly awaited “Bond 25.”
In recent months, a number of indie film companies have either closed their doors or struggled to distribute films. Global Road filed for bankruptcy on Tuesday after Donald Tang struggled to raise enough capital to stay afloat.
Relativity Media filed for its second bankruptcy in May, and many of the films were up for grabs when the company first went under.
And even the growing STX Entertainment has experienced some market pressure and recent box office struggles, raising questions about the studio’s IPO: “The Happytime Murders” opened to a dismal $10 million, following underachievers such as Mark Walhberg’s “Mile 22,” which has pulled in $36.1 million domestically on a $50 million budget, and “Adrift,” which earned a modest $31 million on a reported $35 million budget, according to BoxOfficeMojo.
Sharon Waxman contributed reporting to this story.
For the record: An earlier version of this story included an incorrect box office gross for “Mile 22.”
37 Fall Movies to Obsess Over, From 'Halloween' to 'Mary Poppins Returns' (Photos)
Coming in hot -- and in arguably much higher volume than this past summer -- are a slew of autumn movies to be psyched about. From Halloween-time horror to Oscar hopefuls, browse through for TheWrap's list of the most anticipated new 35 fall movies worth obsessing over.
Sept. 7: "The Nun"
"The Conjuring" is one of the most popular horror movie franchises out there, and "The Nun" spinoff is only looking to elevate the series.
New Line
Sept. 14: "The Predator"
Though it was always billed as a reboot, director Shane Black has stressed that his movie “The Predator” is closer to a sequel, actually expanding on the backstory of the Predator aliens seen in the first two Arnold Schwarzenegger films. And while it includes the likes of Boyd Holbrook ("Narcos") Trevante Rhodes (“Moonlight”) and Thomas Jane, early looks at ComicCon highlighted Black’s sense of humor as well, with Keegan Michael-Key and Olivia Munn doing some heavy lifting.
Fox
Sept. 14: "Lizzie"
The new take on the Lizzie Borden murders, starring Kristen Stewart and Chloe Sevigny, captivated fans at the Sundance Film Festival.
Roadside Attractions
Sept. 21: "Maniac"
Jonah Hill and Emma Stone reunite after 2008's "Superbad" for Netflix's "Maniac," about two people who are persuaded to participate in a pharmaceutical trial that will change their lives forever.
Netflix
Sept. 21: "Fahrenheit 11/9"
Alluding to his 2004 documentary "Fahrenheit 9/11," Michael Moore's upcoming documentary takes aim at Donald Trump in the aftermath of the 2016 presidential election.
Getty Images
Sept. 21: "Colette"
Keira Knightley plays the real-life French writer who publishes her works under her husband's name -- and then defies early 20th century norms with gender-bending affairs. "Colette" was all the rage at the 2018 Sundance Film Festival.
Bleecker Street
Sept. 21: "Assassination Nation"
Another movie that made waves at Sundance, this film sold to the Russo brothers and Neon for a whopping $10 million, and follows a small town that absolutely loses its mind. Odessa Young, Hari Nef, Suki Waterhouse, Bill Skarsgard and Bella Thorne star.
Neon
Oct. 5: "Venom"
Tom Hardy steps into the role of Venom, one of the most popular characters from Spider-Man's rogues gallery. Thanks to incredible effects, Venom looks like he literally stepped out of the pages of the Marvel comics. Sony rebranded all its Spider-Man characters into "Sony's Universe of Marvel Characters" with Venom leading the charge.
Sony
Oct. 5: "A Star Is Born"
Bradley Cooper! Lady Gaga! Bradley Cooper SINGING (and directing for the first time)! We get it all in this movie.
Warner Bros.
Oct. 12: "First Man"
Damien Chazelle's follow-up to "La La Land" reteams him with Ryan Gosling, who plays the moonwalking astronaut Neil Armstrong.
Universal
Oct. 12: "Bad Times at the El Royale"
Drew Goddard directs this ensemble cast of, well, beautiful people. Chris Hemsworth, Jon Hamm and Dakota Johnson star in the thriller about seven strangers meeting in a rundown hotel.
Fox
Oct. 12: "Beautiful Boy"
Timothée Chalamet captured everyone's hearts with last year's "Call Me by Your Name," and early critics have been raving about the movie that looks at the experience of struggling with addiction over many years. Steve Carell also stars as his dad.
Amazon
Oct. 19: "Halloween"
A reboot of John Carpenter's 1978 horror classic of the same name? Count us in! David Gordon Green directs, with Jamie Lee Curtis reprising her role as Laurie Strode.
Universal
Oct. 19: "The Hate U Give"
“The Hate U Give” may end up being one of the timeliest movies of the year. This adaptation of Angie Thomas’s young adult novel of the same name follows an African American teen turned activist after she witnesses her friend shot and killed by a white police officer. Amandla Stenberg plays Starr Carter opposite a great cast including Regina Hall, Anthony Mackie, Issa Rae, Common and Russell Hornsby.
Fox
Nov. 2: "Bohemian Rhapsody"
The film has been in the news a lot, for good and bad -- director Bryan Singer was fired and replaced by Dexter Fletcher, for one. But the movie amped up anticipation again with the first trailers in which star Rami Malek looks identical to Freddie Mercury. The casting couldn't have been better.
Fox
Nov. 2: "Suspiria"
To be honest, Luca Guadagnino's upcoming remake of Dario Argento's creepy horror movie "Suspiria" has been haunting us for months with stills, teasers and most recently, its first trailer. Dakota Johnson and Tilda Swinton star.
Amazon
Nov. 2: "Boy Erased"
Joel Edgerton returns to direct "Boy Erased," which stars Lucas Hedges, Nicole Kidman, Russell Crowe and Edgerton himself. It follows Jared (Hedges), a teen sent by his conservative religious parents to a gay conversion therapy program.
Focus
Nov. 9: "The Girl in the Spider's Web"
Claire Foy is stepping into the role of goth hacker Lisbeth Salander, previously played by Rooney Mara, in this highly anticipated sequel to "The Girl With the Dragon Tattoo."
Sony
Nov. 9: "Overlord"
Although J.J. Abrams said "Overlord" will not be part of the "Cloverfield" franchise, we're still excited -- the film follows American soldiers who discover secret Nazi experiments.
Paramount
Nov. 16: "Widows"
Viola Davis, Elizabeth Debicki, Michelle Rodriguez and Cynthia Erivo play women who kick ass after their late husbands leave them deeply in debt to crime lords.
Fox
Nov. 16: "Fantastic Beasts: The Crimes of Grindelwald"
Given the huge fan base of the "Harry Potter" franchise, anticipation for the second film in the prequel series is high. This time, we'll see Jude Law taking on the role of young Dumbledore alongside Eddie Redmayne's Newt Scamander.
Warner Bros
Nov. 21: "Green Book"
Peter Farrelly, of “There’s Something About Mary” fame, may seem like an odd choice for a biopic resembling “Driving Miss Daisy” and two Oscar nominees. But “Green Book” plays on the humor and true story drama between pianist Don Shirley (Mahershala Ali) and his driver Tony Lip (Viggo Mortensen), a surly, Italian American former bouncer. Set during a tour of the South in the ‘60s, “Green Book” probes themes of race as well as friendship.
Universal
Nov. 21: "Creed II"
2015's "Creed" made a huge dent, both critically and commercially, and even scored Sylvester Stallone a Best Supporting Actor nomination from the Academy. We can't wait to see what Michael B. Jordan and new director Steven Caple Jr. cook up in the sequel.
Warner Bros./MGM
Nov. 21: "Ralph Breaks the Internet"
Six years after "Wreck-It Ralph," John C. Reilly reprises his role in the animated feature. Gal Gadot, Kristen Bell, Sarah Silverman, Jane Lunch, Taraji P. Henson and Mandy Moore are also lending their voices to the movie.
Disney
Nov. 23: "The Favourite"
"Maniac" isn't the only film Emma Stone will star in this fall -- she will also play a servant in Yorgos Lanthimos' follow-up to "The Killing of a Sacred Deer." Rachel Weisz, Olivia Colman and Nicholas Hoult also star in this period drama about a royal love triangle.
Fox Searchlight
Nov. 23: "Shoplifters"
Japanese director Hirokazu Kore-eda’s thoughtful and often heartwarming family dramas have long been a staple of Cannes and the art-house circuit, but his latest, “Shoplifters,” finally won him the Palme D’Or at Cannes last May. It tells of a family of small-time thieves who find a missing child on the street and welcome her into their home, only to have their shoplifting habits come under the microscope.
Gaga Corporation
Nov. 30: "If Beale Street Could Talk"
All eyes are on Barry Jenkins after the Best Picture-winning success of his 2016 film “Moonlight.” His follow-up, which he writes and directs, is an adaptation of a 1974 novel by James Baldwin in which a Harlem woman named Tish (newcomer KiKi Layne) tries to prove that her imprisoned fiancé is innocent while pregnant with their child.
Annapurna
Dec. 7: "Mary Queen of Scots"
Early photos of Saoirse Ronan and Margot Robbie as royal cousins amped up anticipation for the historical drama scripted by Beau Willimon ("House of Cards").
Focus
Dec. 14: "Spider-Man: Into the Spider-Verse"
"Spider-Man: Into the Spider-Verse" will introduce audiences to Miles Morales, who took over as Spider-Man after the death of Peter Parker -- in an animated film from producers Christopher Miller and Phil Lord as well as director Bob Persichetti. Miles Morales is voiced by Shameik Moore.
Sony
Dec. 19: "Mary Poppins Returns"
After Julie Andrews played the famous nanny in the 1964 classic, Emily Blunt will step into the magical shoes, opposite Lin-Manuel Miranda, Meryl Streep, Colin Firth and Julie Walters.
Disney
Dec. 21: "Aquaman"
Jason Momoa is back in a standalone film about the DC Comics hero. Prolific director James Wan, who is the mastermind behind the "Conjuring" and "Saw" franchises, is directing.
Warner Bros.
Dec. 21: "Bumblebee"
“Bumblebee” isn’t just the first “Transformers” spinoff but also the first in the franchise to be directed by someone other than Michael Bay. This prequel, set in the 1980s, has a lot to prove. Travis Knight, a veteran of the stop-motion animated films like “Kubo and the Two Strings," makes his live-action debut.
Paramount
Dec. 21: "Cold War"
Pawel Pawlikowski's follow-up to his 2013 Best Foreign Language Oscar winner "Ida" is a searing love story that plays out over 10 years amid the, well, Cold War in 1950s Poland and Paris. Ten different chapters offer glimpses at the rough love between a conductor (Tomasz Kot) and his ingénue (Joanna Kulig). An unforgiving, stylish and cynical lens make Pawlikowski's cursed lovers all the more watchable.
Cannes
Dec. 21: "Alita: Battle Angel"
Robert Rodriguez directs this adaptation of a beloved Japanese manga about a kickass cyborg (played by Rosa Salazar in motion-capture) who doesn't remember her origins.
Dec. 25: "On the Basis of Sex"
In the midst of the #MeToo movement, Focus is releasing a biopic starring Felicity Jones as Supreme Court Justice Ruth Bader Ginsburg, who authored majority opinions such as "United States v. Virginia," which struck down any law that would allow only men to be admitted into schools.
Focus
Dec. 21: "Welcome to Marwen"
Robert Zemeckis' adaptation of the remarkable 2010 documentary "Marwencol" follows Steve Carell as a man who suffers a brutal attack and then spends his days re-creating a WWII-era village.
Universal
Dec. 25: "Destroyer"
The first image for Karyn Kusama's "Destroyer" was recently released, amping up anticipation for the director's follow up to "The Invitation."
Annapurna
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The season starts with ”The Nun“ and ends with Nicole Kidman’s ”Destroyer“
Coming in hot -- and in arguably much higher volume than this past summer -- are a slew of autumn movies to be psyched about. From Halloween-time horror to Oscar hopefuls, browse through for TheWrap's list of the most anticipated new 35 fall movies worth obsessing over.