James Gunn leaving DC Studios was the biggest superhero shake-up of the year, and new reporting is now shedding light on why it happened. Gunn and his co-chief Peter Safran confirmed they are stepping down after three years running the studio, with former Marvel Studios executive Jeremy Latcham taking over. Gunn has framed the move as a return to full-time filmmaking, but reports from The Hollywood Reporter, Variety and others point to a series of problems that reportedly left Skydance, the new owner of Warner Bros., unconvinced. Here are the four reasons that reportedly led to the exit.
Reason 1 for James Gunn Leaving DC Studios: Superman Lacked Pop Culture Impact
On paper, Superman did its job. Gunn’s 2025 reboot starring David Corenswet grossed around $618 million worldwide, turned a profit and finished as the biggest comic book movie of that year. But the film was meant to be far more than a hit. It was the launchpad for an entire connected universe, and according to reports, Skydance CEO David Ellison felt it never achieved the cultural impact expected from DC’s flagship hero.
Part of the problem is the comparison. Superman fell short of the $670 million that Man of Steel made 13 years earlier, before adjusting for inflation, and it never became the kind of global event that dominates conversation for months. For a studio built around one man’s vision, a solid hit was not the same as a phenomenon.
Reason 2: Supergirl Failed at the Box Office
If Superman was a qualified success, Supergirl was the clear stumble. The second film in Gunn’s DC Universe, starring Milly Alcock as Kara Zor-El, earned roughly $126 million worldwide against a reported budget of around $170 million, with mixed reviews from critics and audiences. Skydance executives reportedly viewed the film as a “disaster.”
That result hurt more than the bottom line. Supergirl was supposed to prove that the new DCU could expand beyond its biggest name and grow into a franchise. Instead, it raised questions about whether audiences were ready to follow Gunn’s universe from one film to the next.
Reason 3: Clayface Failed to Change the Story
Clayface, the R-rated body-horror film about the shape-shifting Batman villain, arrived in late October and opened at number one with around $43 million globally. It went on to pass $100 million worldwide on a budget reported at $44 million, which The Hollywood Reporter described as a modest success.
The problem, according to reports, is that modest was not enough. Skydance wanted big, broad hits, and a small-scale horror spin-off about a lesser-known villain did little to fix the bigger picture after Supergirl. Coverage has described its results as mixed, and it became another example of the new owners questioning where Gunn’s DCU was heading.
Reason 4 for James Gunn Leaving DC Studios: No Clear Vision
When Gunn and Safran unveiled their “Gods and Monsters” slate in early 2023, it leaned heavily on unusual picks such as Swamp Thing, The Authority and Creature Commandos, alongside Superman. Over the following years, plans shifted, release dates moved and several announced projects went quiet. The Brave and the Bold, the DCU’s own Batman film, still has no release date, while Robert Pattinson’s separate Batman universe continues on its own track.
To Skydance, that looked like a studio without a clear road map. Reports describe the incoming leader, Jeremy Latcham, as a “down-the-middle” producer focused on making hits for the masses, which signals a move away from Gunn’s taste for obscure characters and R-rated experiments.
The Power Struggle Behind the Exit
Beyond the box office, there was also a fight over control. Before the merger, Gunn and Safran reported directly to Warner Bros. CEO David Zaslav and were used to having the final word on DC film, TV and animation. Under Skydance, film production is being consolidated under motion picture co-chairs Josh Greenstein and Dana Goldberg, and the DC pair reportedly resisted being placed under another layer of management. The Hollywood Reporter also said they were slow to share slate plans and footage with the new film chiefs.
Things reportedly came to a head on Friday, November 6, when Ellison and Skydance co-CEO Ynon Kreiz met Gunn and Safran on the Warner Bros. lot and told them plans had changed, despite earlier assurances about their place in the merged company.
What Gunn Says and What Happens Next
Gunn’s own explanation is simpler. He has said he disliked “the at-times corporate nature of the job” and is “incredibly relieved” to get back to writing and directing. He has also stressed that he and Safran are not done with DC, with Man of Tomorrow, the Superman sequel he has already shot, due next summer and another DC project he is writing in the works.
It’s important to note that most of these reasons come from anonymous sources, and neither Skydance nor Gunn has confirmed them. What is clear is that the DC Universe is entering a new era under Latcham, and it remains uncertain whether Gunn will get to finish the Superman story he started.
Learn more about what Gunn has said about the move in The Hollywood Reporter.
James Gunn leaving DC Studios: Related Reading
- Gunn and Safran Step Down, Jeremy Latcham Takes Over
- Gunn’s Heartfelt Farewell Note to Fans
- Lanterns Is Not Cancelled, Says Chris Cantwell
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