Warner Bros. is engaged in intense negotiations to secure a sequel to its 2023 blockbuster “Barbie,” as a critical deadline approaches that could see film rights revert to Mattel, the company behind the iconic doll. The studio faces a December cutoff to finalize agreements with the principal creative talent, including writer-director Greta Gerwig and leading actors Margot Robbie and Ryan Gosling, or risk losing control of the franchise.

The original “Barbie” film earned $1.5 billion globally and received eight Oscar nominations, marking it as Warner Bros.’ highest-grossing movie to date. This success has created significant pressure for the studio to quickly follow up with a sequel. However, details of the deal remain unsettled despite months of talks, sources familiar with the negotiations said.

Warner Bros. holds a contractual arrangement with Mattel that entitles the toy company to a share of the sequel’s gross profits, a structure similar to their working relationship on the first film. While Warner Bros. has proposed substantial offers to the film’s talent—including an upfront raise and participation in box office profits—executives have not yet reached consensus on terms. One offer reportedly includes a $20 million fee for Ryan Gosling, his current asking price.

Warner Bros. Discovery Chief Executive David Zaslav reportedly viewed some of the proposed profit participation terms as too generous and has withheld final approval. A Warner Bros. spokeswoman attributed the stalemate to the talent representatives, stating they declined the last offer made in May and have not submitted counterproposals. Studio co-chairs Pam Abdy and Michael De Luca confirmed their efforts to finalize the sequel, emphasizing the lack of an agreement to date.

These negotiations are occurring amid broader challenges for Warner Bros. Discovery. The company's planned merger with Paramount has recently been paused following legal intervention by state attorneys general. Meanwhile, recent box office performances have been disappointing, with films such as “Supergirl” and “The Bride” failing to recoup costs. “Barbie” remains a key franchise for Warner Bros. as it navigates this uncertain period.

Mattel has remained silent on the ongoing negotiations. Since Ynon Kreiz assumed leadership, the toy company has taken a more assertive role in Hollywood partnerships, signaling a desire for more timely development on projects. Kreiz previously expressed his intention to avoid “back burner” delays in content production.

If Warner Bros. fails to reach a deal, Mattel would regain full control of the “Barbie” rights but would be required to rebuild the franchise independently. The company would be prohibited from using story elements or talent from the 2023 film with another studio.

Sources indicate the current issues stem from the absence of sequel clauses in the original contracts. Warner Bros. had foregone including guaranteed sequel agreements to secure Gerwig’s involvement, taking the risk of proceeding without assured follow-up commitments. Gerwig and her writing partner and husband, Noah Baumbach, who is concurrently finalizing a Netflix project, have indicated they have a storyline ready but are withholding further creative development until contractual arrangements are finalized.

Even if a deal is struck soon, industry insiders warn that production and release of a sequel could take several years. The studio’s ability to capitalize on the momentum of the initial “Barbie” phenomenon will depend heavily on resolving these negotiations in the coming months.