What 'Tarzan's' Opening Weekend Means For Warner Brothers

Over the last few years, Warner Bros. (Time Warner Inc TWX) has put a lot of movies in development that sounded good on papers but analysts questioned if they would be financially viable. This weekend's new release "The Legend of Tarzan" was squarely on that list.

The good news for the studio is that "Tarzan" over-performed and the ape-man will top early expectations. Over the traditional three-day frame, "Tarzan" is on pace to earn $38 million tally, and including the 4th of July holiday, that total could swing out to over $45 million.

Related Link: "Tarzan" Has Surprisingly Solid Weekend Despite Weak Reviews And Social Chatter

The bad news, though, is that the film cost $180 million to produce. While those totals are stronger than anyone expected (courtesy of strong word-of-mouth) the film is going to need a lot of international help to be profitable. The film will have a favorable opening date in China later this year, but for now, it has debuted in 19 territories for a total take of $19.3 million (which was again higher than anticipated).

For Warner Bros., the movie snaps a three film streak of success ("Me Before You," "The Conjuring 2," "Central Intelligence"), but executives have to be slightly relieved, as it could have been much worse. Now it's a clear road for Warner Bros. until its next tentpole release in August, "Suicide Squad," which will tell investors everything they need to know about the studio's future prospects.