Fans hilariously put Warner Bros. on trial as Village Roadshow files for bankruptcy

Village Roadshow has declared bankruptcy.

One minute, you’re co-producing Hollywood’s biggest blockbusters, and the next, you’re filling out Chapter 11 paperwork. Village Roadshow Entertainment Group—the name behind Joker, The Matrix, and Ocean’s Eleven—is now bankrupt.

The company, which has been a major player in film production since 1997, decided on March 17, 2025, that it was time to take a financial timeout.

The offenders are a legal fight with Warner Bros. and a failed indie experiment.

Warner Bros. was once again in the middle of a vicious online roast session—because by now, it's a tradition in all movie discussions. Fans did not spare any words, declaring that whatever the studio touches turns into suffering. They took WB through side-splitting GIFs and brutal comments to make the point.

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Social media reacts to Village Roadshow filing for bankruptcy

Fans jokingly called out Warner Bros., terming it one of the "worst studios ever." Others even quipped that WB should keep its distance from other studios so they do not spread the curse.

A user @JustBenByDay noted:

"It's like every day at this point that we continue to see Warner Bros as the worst movie studio ever."

Another user @LawyerMorty94 added:

"Nah at this point we simply have to burn WB to the ground. What a sh*thole company."

Sharing a hilarious GIF, a user @IanDavidNoakes mentioned:

"I don't know all the facts. Did Warner Bros. have a case in this financial dispute, or did they bully Village Roadshow out of business?"

Then, of course, there were others who weren’t having any of it. Some users suspected this was staged. Others speculated that this was an opportunity to capitalize on.

A user @St0rmShadowX said:

"Tinfoil hat but maybe it's a planned bankruptcy??"

One user @dropgenius mentioned:

"Sounds like some amazing IP to go bankrupt on."

A user @MalianLovesYou joked:

"They snorted it."

Meanwhile, other users were preoccupied comparing it to legendary internet memes, particularly the perpetual waiting for GTA 6. Others made Matrix comparisons.

A user @WelcomeNowLeave went on to say:

"We got a major production company getting bankrupt over the most lamest movie they ever made before GTA 6."

A user hilariously @The_Epic_Scenes mentioned:

"Warner Bros really unplugged them from the Matrix."

Then there was a user @MarioEmmet who has a simple message for Warner Bros.:

"Warner Bros. Discovery:"

One user @mosorwvlad think this is:

"How Village Roadshow feels right now!"

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Village Roadshow bankruptcy: Who will purchase the Hollywood giant?

The studio has more than 100 films and $19 billion in box office revenue worldwide.

All of that glitz and glamour stopped dead in its tracks, however, when Warner Bros. made the decision that putting The Matrix Resurrections onto HBO Max simultaneously with its theatrical release was a bright idea.

Village Roadshow disagreed vehemently, and the consequences were immediate.

The studio sued Warner Bros., alleging that the concurrent streaming release devalued the franchise. The legal fees mounted—$18 million and rising—and overnight, the company was overwhelmed by debt.

Although its assets are valued between $100 million and $500 million, its liabilities fall in the range of $500 million to $1 billion, according to the filing reported by The Los Angeles Times.

Adding to the mayhem, the company is deeply in debt to some serious players, including Kirkland & Ellis for attorney fees and the Writers Guild of America West.

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How streaming is bankrupting Hollywood studios

If you've been paying attention, you already know that streaming has been relegating traditional Hollywood business models.

Village Roadshow is not the first to have been brought low by this transition, but it could be among the most dramatic victims.

Warner Bros.' all-streaming bet has set the entire H-town ablaze.

Even with Goldman Sachs searching for a buyer, the legal drama that continues made deals vanish.

Village Roadshow is currently attempting to get through this mess with a coherent asset sale, and a "stalking horse" bidder already wants to pay $365 million for its library of films, according to The Hollywood Reporter.

But Village Roadshow’s future hangs on more than simply selling. If it wants to remain in the game, where Hollywood is dominated by streaming giants and constantly shifting business models, it's going to need a serious facelift.