Digger's $8M Debut Signals $150M Loss for Warner Bros. Amid Paramount Merger

Key points

• Digger opened to $8 million in North America and $20 million globally, far below the $18-20 million minimum needed to justify its $160-180 million production cost.
• The film is projected to lose $150 million or more, with a break-even point estimated between $300 million and $350 million globally.
• Warner Bros. film chiefs Michael De Luca and Pamela Abdy were dismissed by David Ellison on Friday, days before the Paramount Skydance merger closes on October 6.
• The film's poor performance follows a difficult 2026 for Warner Bros., which has not had a domestic hit over $100 million, contrasting with the studio's 2025 successes like 'Sinners' and 'A Minecraft Movie'.
• Cruise's promotional efforts, including appearances with the Kelce brothers and GQ, failed to offset negative critical reception and word-of-mouth.

Background

Our earlier coverage noted that 'Digger' opened to weak Thursday previews of $1.2 million, with weekend projections ranging from $12 million to $19 million. The film's release coincided with the departure of Warner Bros. leadership and the impending Paramount Skydance acquisition, which faces over $80 billion in debt. Critics were sharply divided on the film's quality, with some praising its bold satire and others calling it a misfire. The studio's 2026 domestic revenue stood at $437.7 million, a significant drop from $1.8 billion in 2025.

How outlets are covering it

IndieWire and Variety both emphasize the financial disaster, with IndieWire highlighting the $150 million loss and Variety noting the film's fifth-place debut behind 'Verity'. Both outlets attribute the failure to negative buzz and the film's R-rated comedy format. BBC's review, however, praises the film's artistic ambition, calling it a 'love-it-or-hate-it folly' and highlighting Cruise's daring performance, though it acknowledges the commercial risk. Scientific American focuses on the film's climate narrative, noting that while the iceberg scenario is exaggerated, the underlying concerns about climate change are valid. The outlets disagree on the film's artistic merit but agree on its commercial failure, with IndieWire and Variety focusing on the financial implications and BBC and Scientific American offering more nuanced artistic and thematic assessments.

Why it matters

The failure of 'Digger' signals a shift in studio strategy under Paramount Skydance, which may prioritize commercially safe projects over high-risk auteur-driven films. The departure of De Luca and Abdy, who were known for supporting ambitious projects, suggests a move toward a more conservative approach. This could impact the future of auteur-driven films and the types of projects that studios are willing to greenlight. The film's failure also highlights the risks of high-budget, R-rated comedies and the importance of word-of-mouth in the current market.

What to watch

Warner Bros. is expected to pivot toward more commercially safe projects under Paramount Skydance's leadership, with fewer 'Diggers' and more 'Days of Thunder 2's'. The studio will likely focus on franchises and established IP to mitigate financial risks. Cruise may also shift back to action blockbusters, as his recent non-action projects have underperformed. The film's poor performance may also impact the studio's 2026 revenue, which is already significantly lower than 2025.