James Gunn’s DC Studios Exit Explained: Skydance Clashes, Box Office Trouble, and His Superman Plans in Jeopardy

James Gunn is out at DC Studios, and the reasons behind his unexpected exit are starting to come into focus. From disappointing DCU box office numbers to disagreements with Skydance executives, it sounds like Gunn and Peter Safran were fighting an uphill battle long before they were shown the door.

A new report from The Hollywood Reporter breaks down what led to their removal as DC Studios co-CEOs, and it also reveals some interesting details about Gunn's plans for Superman and the future of the DC Universe.

Apparently, Gunn had a much bigger Superman story mapped out than fans realized. He was already writing another movie followingMan of Tomorrow, with the goal of building a Superman trilogy that would see a new installment released every two years. From there, the franchise could have "maybe" evolved into a full-fledged Justice League series.

Unfortunately, those plans may now be dead. One of the biggest problems reportedly came down to how Gunn and Safran operated under Skydance's new leadership.

The two had been running DC Studios with considerable independence since taking charge in 2023, and that arrangement didn't sit particularly well with their new bosses.

According to the report: "Sources say the DC heads were not forthcoming or were slow in sharing plans, slate details and footage with the Skydance movie heads. In the end, [Josh] Greenstein and [Dana] Goldberg prevailed, and new hire Latcham will report to them."

That lack of communication was only part of the problem. Gunn and Safran's contracts reportedly guaranteed them a direct line to Warner Bros. CEO David Zaslav, even if the company changed ownership. Under Skydance, that would have meant reporting directly to David Ellison.

The report explains: "Sources point to several points of tension between DC's Gunn and Safran and Skydance's Greenstein and Goldberg. Before Skydance’s acquisition, Gunn and Safran reported directly to Warner Bros. CEO David Zaslav; their contracts stipulated they would maintain that kind of direct reporting structure in the event of a change of leadership, in this case Ellison."

That arrangement created friction with Skydance film executives Josh Greenstein and Dana Goldberg, who wanted DC Studios operating under their authority.

Ellison apparently had little interest in getting involved in those disputes. According to the report, he "never wanted DC to report directly to him in the first place and did not have time for studio politics, such as posturing between division heads."

Despite previously assuring Gunn and Safran that they would remain involved after the merger, Ellison and Ynon Kreiz reportedly decided during the fall that it was time for a leadership change. The pair were officially informed of their firing last Friday, "despite previous assurances they would be part of the new Skydance mega-studio."

Of course, studio politics weren't the only issue. Money played a major role, and Skydance wasn't particularly impressed with the DCU's performance. The DC movies released under Gunn and Safran were reportedly considered "not great for business," with Supergirl viewed as a "disaster" by Skydance executives.

Even Superman, which was supposed to establish the foundation of Gunn's new DC Universe, reportedly failed to turn a profit or deliver "the kind of pop culture impact, in the way that kind of movie should, Skydance's thinking went."

That's a rough assessment for a movie that was supposed to launch a new era for DC. There was some interest in the direction of Clayface, which managed to become a modest success.

Its performance reportedly sparked conversations about making "more spooky, slimmed-down DC movies," but the studio wasn't interested in building its future around projects that could barely break even.

Skydance wants major theatrical hits, and executives apparently weren't convinced Gunn's approach would consistently deliver them. That's where Jeremy Latcham comes in.

The newly appointed DC Studios CEO is described as a "down-the-middle shooter whose goal is to make hits for the masses and get people into movie theaters," and someone who could be "the guy to deliver what’s more in line with Ellison’s broader tastes".

That suggests DC Studios could be moving away from Gunn's interest in obscure comic book characters, unusual creative choices, and R-rated projects in favor of more mainstream superhero entertainment.

Latcham is also expected to take a more active role in individual productions. He's described as a "very hands-on producer who likes to spend time on sets."

He and Gunn reportedly had their first conversation on Monday, but there's still no word on whether Gunn will get to finish his Superman story. His larger DCU slate could also be scrapped as Latcham begins developing his own plans for the franchise.

The uncertainty extends beyond Superman. According to Variety, the future of Matt Reeves' The Batman trilogy is also up in the air.

Reeves has already stepped away from directing The Batman: Part II because of an undisclosed personal matter, with Steven Soderbergh taking over the sequel. That change had already raised questions about whether Reeves would return to direct a third movie, and the shakeup at DC Studios only complicates things further.

Variety reports, "Reeves has spoken about having plans for a Batman trilogy, but now it’s unclear whether it would continue under new leadership."

A lot depends on what Skydance decides to do with the DC Universe. If the company sticks with a connected superhero franchise, The Brave and the Bold could become a priority. However, if the studio abandons that approach, Robert Pattinson could remain the primary Batman on the big screen.

The bigger concern is whether audiences will have any confidence in DC's next attempt to build a franchise. As THR points out, Skydance is worried about "whether or not fans will continue to invest in movies and actors before the rug is pulled out yet again."

That's a legit concern! DC has spent years changing creative direction, abandoning projects, and trying to figure out how to build a successful cinematic universe. Gunn was brought in to provide some consistency, and now the studio is changing course again.

It's unfortunate because Gunn clearly had a long-term vision for Superman and the DCU, even if his approach wasn't delivering the financial results executives wanted.

Now Latcham has the difficult job of winning over audiences while figuring out which existing projects are worth keeping and which ones need to go.

The biggest question is whether Skydance can finally give DC the stability it needs to succeed, or whether fans are about to watch another promising superhero universe get rebooted before it ever has a chance to grow.