A failed film generates a write-off whether or not it's released. If released, then the losses (and associated write-offs) are taken over the course of several years, since many of the costs of the movie are treated as capitalized costs that get expensed over time.
If the movie is not released, then the expenses can get written off all at once. Due to the way financial accounting works (e.g. time value of money) an immediate deduction is more valuable than a deduction over time. In this case, the value would have been from offsetting profits from Barbie. It's a small savings, only about 6m in reduced taxes (on an approximate 30m writedown, taking into account that WB did not fully finance the film itself and so losses would be shared with the other investors), for an effective loss to WB of 24m.
Based on the 2x Budget principle (marketing and distribution combined are generally the same as the production budget), with a 70m production budget, Coyote vs Acme was expected to make significantly less than 140m gross if released. Given that they were willing to completely write off the film, this means they were expecting a total box office gross of significantly less than $115 million.
If the movie is not released, then the expenses can get written off all at once. Due to the way financial accounting works (e.g. time value of money) an immediate deduction is more valuable than a deduction over time. In this case, the value would have been from offsetting profits from Barbie. It's a small savings, only about 6m in reduced taxes (on an approximate 30m writedown, taking into account that WB did not fully finance the film itself and so losses would be shared with the other investors), for an effective loss to WB of 24m.
Based on the 2x Budget principle (marketing and distribution combined are generally the same as the production budget), with a 70m production budget, Coyote vs Acme was expected to make significantly less than 140m gross if released. Given that they were willing to completely write off the film, this means they were expecting a total box office gross of significantly less than $115 million.