AMC Global Media has agreed to pay $120 million to settle a long-running lawsuit brought by The Walking Dead creator Robert Kirkman and several producers over profit participation from the franchise. The settlement, reached on September 4 and disclosed in an SEC filing, resolves breach-of-contract claims that had been scheduled to go to trial in October 2026.
The agreement covers Kirkman, Gale Anne Hurd, Glen Mazzara, David Alpert and Charles Eglee, along with their affiliated companies. AMC will pay $85 million by September 18, 2026, while another $35 million is due by January 31, 2027. Importantly, that second payment is an advance against future Modified Adjusted Gross Receipts participation rather than a complete buyout of the producers’ ongoing contractual rights.
Why AMC Is Paying $120 Million Over The Walking Dead
The dispute centered on how AMC calculated Modified Adjusted Gross Receipts, or MAGR, the formula used to determine compensation owed to participants with profit-sharing agreements. The producers argued that AMC’s accounting treatment did not properly provide them with the compensation they were contractually entitled to receive from The Walking Dead and Fear the Walking Dead.
The lawsuit was originally filed in 2022 and had remained unresolved for several years. A trial had been scheduled to begin on October 27, 2026, but the parties reached a settlement weeks before the proceedings were due to start. In a joint statement, the plaintiffs and AMC described the agreement as an “amicable resolution” of their remaining litigation concerning The Walking Dead television franchise.
The financial impact is significant for AMC. The company previously expected to generate approximately $220 million in free cash flow during 2026, but now projects roughly $150 million, taking the $85 million cash settlement payment and related tax benefit into account. AMC also said it expects to record an approximately $85 million charge during the quarter ending September 30.
The Walking Dead Has Generated More Than One Major Settlement
The latest agreement follows another enormous legal settlement involving the franchise. In 2021, AMC agreed to pay $200 million to former The Walking Dead showrunner Frank Darabont and his agency, CAA, resolving a separate dispute concerning profit participation.
Taken together, the two settlements represent $320 million in headline settlement consideration connected to major Walking Dead profit-participation disputes. However, that figure should not be interpreted as $320 million in pure damages. The 2021 agreement included amounts connected to participation payments that AMC had already accrued, while $35 million of the latest settlement is an advance against future compensation.
The latest deal also does not end the producers’ financial relationship with the franchise. AMC’s SEC filing states that Kirkman, Hurd, Mazzara, Alpert and Eglee will continue receiving their ordinary contractual MAGR participation going forward, with the $35 million advance offset against future amounts.
The timing is particularly notable because The Walking Dead remains a valuable property for AMC. In July, AMC announced a five-year, $500 million global co-exclusive streaming agreement with Netflix covering the Walking Dead Universe, consisting of seven series and 371 episodes. AMC will retain rights to exhibit the shows on its own streaming services as well.
With the franchise continuing to generate licensing revenue, streaming deals and new spinoffs, the latest settlement closes another major chapter in the long-running battle over who should benefit from The Walking Dead’s enormous financial success.