'It's mind-boggling': The already-filmed 'Batgirl' movie won't be released at all, and it's the latest headache for DC movies

• The "Batgirl" movie has been scrapped by Warner Bros. Discovery after it completed filming.
• One comics-and-film-industry source called it "mind-boggling."

The DC movie franchise was hit with another blow this week.

"Batgirl," directed by "Bad Boys for Life" filmmakers Adil El Arbi and Bilall Fallah and starring "In the Heights" actress Leslie Grace, has been scrapped by Warner Bros. Discovery. It won't be released on HBO Max as originally intended, or in theaters.

It's an unusual development given that the movie had wrapped filming and was in the test-screening phase, with just finishing touches needed, and had cost $90 million to make after inflated costs due to the pandemic, according to Variety.

"I haven't seen anything like the cancellation of a completed film ever," said one comics-industry source, who also works in the film industry and wished to remain anonymous to protect business relationships.

"The fact that it was done with something with the word 'Bat' at the front, which is part of one of their most valuable IP, makes it all the more shocking," the person told Insider. "Bat characters are valuable at every sector of their business. It's mind-boggling in any context."

The latest twist since the WarnerMedia-Discovery merger

Warner Bros. Discovery, DC's new parent company after the WarnerMedia and Discovery merger, has been making a lot of cost-saving changes. Variety reported that the movie was scrapped in order to take a tax writedown.

In a statement, the company said the decision was "not a reflection" of Grace's performance, but "reflects our leadership's strategic shift as it relates to the DC universe and HBO Max."

The company has also made getting DC movies on the right track a priority, and this seems like a long-term play in that regard after years of behind-the-scenes chaos.

In April, Variety reported that Warner Bros. Discovery wants to "overhaul" DC, including revitalizing underused characters like Superman and finding an exec to oversee DC's creative strategy, similar to Marvel Studios president Kevin Feige.

DC has had some recent hits, such as "Aquaman" and "Joker," which both grossed over $1 billion worldwide, and some critical favorites, like "The Suicide Squad" and "Shazam!" that didn't wow at the box office. But for the most part, DC movies have struggled to reach the same consistent critical and financial heights of Marvel movies, which Warner Bros. Discovery is looking to change.

The company will first have to deal with "The Flash." Star Ezra Miller has been arrested twice this year in Hawaii, first on disorderly conduct and harassment charges, and then again on a second-degree assault charge, prompting Warner Bros. and DC execs to call an emergency meeting about the actor's future in DC movies, according to Rolling Stone.

As of now, "The Flash" is slated for theatrical release in June 2023, after getting pushed from this year.

It's easy to wonder why Warner Bros. Discovery has been quicker to halt "Batgirl" than "The Flash," given the controversy around the latter. That likely comes down to another strategic shift at the company: CEO David Zaslav is committed to repairing the relationship between Warner Bros. and movie theaters after every WB movie was released simultaneously in theaters and HBO Max last year.

"The Flash" carries a hefty production budget of $200 million, according to Deadline, more than double "Batgirl's" costs, and was made with a theatrical release in mind. Deadline also reported that Warner Bros. wants characters who appear in "Batgirl" to first make their appearance theatrically in "The Flash" — Michael Keaton was set to reprise his role as Batman in both films.

The comics-and-film-industry source said that the "Batgirl" decision is a "bad look," but shows that Warner Bros. Discovery is aiming to "clear the decks" and "establish a distinctive strategy with the DC Universe."

If you worked on the "Batgirl" movie or have seen footage, you can reach out to the author at tclark@insider.com