The $90 million movie was nearly complete, but Warner Bros. Discovery opted to not release it in favor of a tax writeoff as it looks to save costs, according to Variety and The Hollywood Reporter.
Zaslav defended the decision during this week's earnings call.
"The objective is to grow the DC brand, to grow the DC characters," he said. "But also, our job is to protect the DC brand, and that's what we're going to do."
The company is also focusing on theatrical releases, a pivot from the WarnerMedia regime, and "Batgirl" was developed as a straight-to-streaming release.
"We can't find an economic case for it," Zaslav said.