‘The Walking Dead’ Profit Fight Ends in $120 Million Settlement, Bringing AMC Payouts to $320 Million
AMC has agreed to pay “The Walking Dead” creator Robert Kirkman and four producers $120 million to settle a breach of contract lawsuit over profits from the hit franchise, bringing the network’s two major settlements tied to the series to $320 million.
Kirkman, Glen Mazzara, David Alpert, Charles Eglee and Gale Anne Hurd reached the agreement with AMC Global Media on September 4. AMC will pay $85 million this month and another $35 million by January 31, 2027.
The settlement resolves a 2022 lawsuit that grew out of AMC’s earlier $200 million deal with former “Walking Dead” showrunner Frank Darabont and his agency, CAA.
Kirkman and the other producers argued that the Darabont settlement triggered most favored nations provisions in their own contracts, which they said required AMC to provide them comparable financial treatment.
AMC disputed that interpretation and sought to have the lawsuit dismissed. The case was scheduled for trial on October 27 before the parties reached the new agreement.
The $35 million payment due next year will be treated as an advance against future profit participation from “The Walking Dead” and “Fear the Walking Dead.” The producers will continue receiving their contractual share of future proceeds once that advance is offset.
Most favored nations clauses are commonly used to protect one party from receiving less favorable treatment than another under specified contract terms. In the AMC dispute, the producers claimed the $200 million Darabont settlement created an additional payment obligation under those provisions.
The 2022 case was separate from an earlier lawsuit Kirkman and several of the same producers filed against AMC in 2017.
That litigation focused on how AMC calculated profits from “The Walking Dead,” “Fear the Walking Dead” and “Talking Dead.” The producers claimed the network’s accounting methods reduced the amount available to them under their profit participation agreements.
AMC denied those allegations.
Most of the claims in the earlier case were rejected, while remaining contract issues went to arbitration. A panel awarded the producers about $7.8 million in 2024.
Darabont’s dispute with AMC began even earlier.
The writer and director, who developed “The Walking Dead” for television and served as its first showrunner, sued AMC in 2013 after he was fired during production of the second season. He and CAA accused the network of underpaying profit participation and challenged the way AMC valued and licensed the series.
AMC settled those cases in 2021 for $200 million without admitting wrongdoing.
Kirkman and the other producers later argued that the settlement gave them new rights under their own contracts, leading to the 2022 lawsuit now being resolved.
The two settlements together total $320 million, although they involve different claims and separate litigation.
The latest payment will also affect AMC’s cash flow. The company said the $85 million due this month contributed to a reduction in its expected 2026 free cash flow from approximately $220 million to approximately $150 million. Its revenue and adjusted operating income forecasts remain unchanged.
“The Walking Dead” remains a major property for AMC. In July, the company announced a five-year licensing agreement worth $500 million that gives Netflix co-exclusive global streaming rights to the broader franchise while allowing AMC to continue offering the shows through its own services.
Under the settlement, the parties will dismiss the 2022 lawsuit with prejudice, preventing the same claims from being brought again.
Kirkman and the other producers will continue to hold future participation rights in the franchise after the $35 million advance is recouped.
