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DC Films president Walter Hamada is reportedly on the verge of resigning after deciding to cancel Batgirl. Warner Bros. CEO David Zaslav has also been on the lookout for new business talent to take over the DC Universe, a fact he may have considered.

The news comes from the recent investigation By The Hollywood Reporter. According to sources close to Hamada, the executive is carefully considering exiting the company, apparently seeking legal advice. Meanwhile, Hamada has agreed to stay with DC Films.

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Sources familiar with the situation noted that Hamada will remain at the company at least until Dwayne Johnson’s “Black Adam” hits theaters on Oct. 21. “He’s on hold,” the source noted. “The decision to make this confrontational has not been made. However.” Hamada has yet to issue a statement on the matter.

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Tensions have been rising within the company following news of Zaslav’s planned “reset” for DC Studios. The executive intends to rebrand over the next decade to compete with its biggest rival, Marvel Studios. “We think we can build a stronger, sustainably growing business in Washington,” Zaslav told investors on an earnings call last week. “As part of that, we’re going to focus on quality. We’re not releasing any movies until they’re ready.” He said “DC is something we can do better.”

Warner Bros. CEOs Michael DeLuca and Pam Abdi are currently leading DC Studios until Zaslav confirms his new leadership. Executives apparently informed Hamada that Batgirl was about to be canceled at the screening of Black Adam, prompting him to consider leaving the company. The film reportedly cost $90 million to make and is already in post-production. Based on Zaslav’s vision of the DC Universe, the movie was clearly not good enough to be released. In an effort to cut costs, the company, along with the Wonder Twins, put the project on hold and canceled it in May.

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