Legendary Entertainment is reportedly set to leave its eight year partnership with Warner Bros. Pictures by the end of the year.
According to Variety, Legendary could set up shop at a rival studio unless the two companies can to terms on a new deal after negotiations begin next month. Said possibility is "unlikely" according to sources, but Warners retains first right of negotiation.
This comes as Warners is readying the release of three of the year's biggest films that the pair partnered on - "The Hangover Part III," "Man of Steel" and "Pacific Rim". They are also obligated to continue co-funding and releasing the films "300: Rise of an Empire," "The Seventh Son" and 2014's "Godzilla".
WB chairman Kevin Tsujihara must balance Legendary's desire to grow and manage its own brand with the needs of his own studio. Legendary's Thomas Tull reportedly wants even more say in the marketing and release dates of the movies in which Legendary is and would be partnered.