Barbie 2: Dreamhouse Drama - The Sequel's Stalled Progress Amidst High-Stakes Pay Negotiations and Unraveling Deals

After Margot Robbie's groundbreaking portrayal of the iconic doll-turned-woman in Barbie, Hollywood insiders are left asking, "Is Barbie 2 dead in the water?" The much-anticipated sequel is currently embroiled in a whirlwind of power plays and paycheck disputes involving some of Tinseltown's biggest names. The creative forces behind the record-breaking first film—Greta Gerwig, Robbie, David Zaslav, Bryan Lourd, Ryan Gosling, Noah Baumbach, and Michael De Luca and Pamela Abdy—have been drawn into a world of pink-hued chaos.

The latest news has sent shockwaves through the industry after reports surfaced that deal talks for Barbie 2 have stalled, leaving the film's future uncertain. At the helm of these discussions is Gerwig, who made history as the most successful woman director ever following the first movie's global box office success of over $1.4 billion. Baumbach, Gosling, and Robbie—in her role as producer and star—round out the team.

The studio has reportedly made six offers in the past three years, all of which have been rejected. The most recent offer, presented late this spring, is said to be Warner Bros.' highest ever for a filmmaking team and its stars. However, some sources dispute this, claiming that while the "package" price may be historic, individual compensation is not. CAA, representing all four creatives, has yet to counter the latest offer, with Gerwig's lawyer Tara Kole also involved in negotiations.

The potential collapse of a sequel deal comes as WB film chiefs De Luca and Abdy have roughly four months to get another Barbie movie into active development or risk losing the rights to the iconic doll to Mattel. Without new contracts, Mattel would not be allowed to use even a shred of Gerwig's Barbie as a foundation for a reboot. Gerwig and Baumbach are said to have an idea for a sequel, but they won't put pen to paper without signed agreements.

Industry insiders were left scratching their heads when they learned that the original deals for the top creatives did not include any obligations for a sequel. These negotiations took place under a different Warner regime and reportedly Gerwig was adamant about not being tied to a sequel at the outset. Another source close to the studio speculated it would be unusual for Warner Bros.

Pictures to ask Gerwig for an option given her limited filmography and lack of experience with large-scale IP. However, the new financial demands from Robbie, Gosling, Gerwig, and Baumbach are significant, according to sources. These include pay increases in upfront fees and generous boosts in back-end participation (excluding Baumbach, who would only see a fee hike).

Gosling is said to be asking $20 million to reprise his Oscar-nominated role as Ken. Robbie was projected to make around $50 million in salary and back end from the first movie, but a studio source claims her final compensation will surpass that figure. Gerwig also made tens of millions of dollars from the initial film. Sources report that the creative team is content with their upfront salaries, but less so with the back-end terms.

Another source disputes both these points. Variety has learned that the team is not asking for first dollar gross, meaning they'd get paid before the studio recoups a dime. However, no one except Zaslav seems to be saying this team isn't worth it. One insider plainly stated that a sequel will not move forward unless Warner Bros. comes around. "Why wouldn't it be in the best interest of WBD shareholders to greenlight a sequel to their biggest film ever?" the source pondered, expressing concern over Zaslav's potential decision to derail a potential billion-dollar sequel over compensation.

Studio insiders argue that Zaslav, Abdy, and De Luca value talent relations, demonstrated by their most recent (and supposedly historic) contract offers. The deal impasse creates complications for Mattel, whose fledgling studios unit scored a hit with the success of Barbie. Creative leader Robbie Brenner and CEO Ynon Kreiz are eager to replicate that success.

Mattel has a deal ready to go with Warners but needs the filmmaking team on board. Sales of Barbie dolls have taken a dive after a 2023 spike tied to the movie, and Mattel marketing leadership recently announced plans to rebrand Barbie as a fashion icon—with more clothes and accessories on offer. Who better to help launch this new direction than Robbie, one of the most closely watched figures on the red carpet?

The fate of Barbie at Warner Bros. may have an unlikely savior in David Ellison, should he emerge victorious in his bid for the iconic company. He could potentially reactivate the Mattel rights and bring the creatives back into the fold. "I'd bet this would be the first deal he makes," said a source. Representatives for the filmmakers, stars, studio, Mattel, and CAA declined to comment for this story.