From my point of view, the flashpoint of this dispute, came in late spring of 2005. Both Fox and Warner Brothers were offered the chance to make Watchmen. They were submitted the same package, at the same time. It included a cover letter describing the project and its history, budget information, a screenplay, the graphic novel, and it made mention that a top director was involved.Then, screenwriter John August explains on his blog that the "Shazam!" movie he had been writing is dead in the water and explains from his P.O.V. how it all went down.
And it's at this point, where the response from both parties could not have been more radically different.
The response we got from Fox was a flat "pass." That's it. An internal Fox email documents that executives there felt the script was one of the most unintelligible pieces of shit they had read in years. Conversely, Warner Brothers called us after having read the script and said they were interested in the movie - yes, they were unsure of the screenplay, and had many questions, but wanted to set a meeting to discuss the project, which they promptly did. Did anyone at Fox ask to meet on the movie? No. Did anyone at Fox express any interest in the movie? No. Express even the slightest interest in the movie? Or the graphic novel? No.
In retrospect, I can point to two summer Warner Bros. movies that I believe defined the real issue at hand: Speed Racer and The Dark Knight. The first flopped; the second triumphed. Given only those two examples, one can understand why a studio might wish for their movies to be more like the latter. But to do so ignores the success of Iron Man, which spent most of its running time as a comedic origin story, and the even more pertinent example of WB’s own Harry Potter series. I tried to make this case, to no avail.