In a story from Variety, Warner Bros. and Mattel will not be teaming up to make Masters of the Universe. The film is planned to be a live-action reinvention of the Mattel toy line. Warner Bros. and producer Joel Silver have been working on this project since 2007.
Apparently, Mattel and Warner Bros. fell out over the direction of the project and decided "to let the option lapse this month." In the story, He-Man is a brawny prince who transforms into a warrior who becomes the last hope for a magical land called Eternia, which is being ravaged by technology and the evil Skeletor.
Mattel is now looking to set the property up at another studio. The plan is for director John Stevenson (Kung Fu Panda) to remain attached to the project. Silver will not be involved as he is exclusive to Warner Bros.