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The success of Alien (1979) led to immediate discussions about a sequel, but the production company Brandywine Productions struggled to convince 20th Century Fox to make it. Studio president Alan Ladd Jr. supported the project but left Fox to found the Ladd Company, and his replacement, Norman Levy, was concerned about the cost of producing an Alien II.[23][24][25] According to Brandywine co-founder David Giler, Levy believed a sequel would be a "disaster".[25] Fox executives believed that Alien's success was a fluke, and that it had not generated enough profit or audience interest to warrant a sequel.[25] Box-office returns for horror films were also declining.[26] Progress was further slowed when Giler and Brandywine co-founders Walter Hill and Gordon Carroll sued Fox for unpaid profits from Alien. Using Hollywood accounting methods, Fox had declared Alien a financial loss despite its earnings of over $100 million against a $9–$11 million budget. Brandywine's lawsuit was settled by early 1983, the result being that Fox would finance the development of Alien II, but was not required to distribute the film.[25][27] Levy's eventual replacement, Joe Wizan, was receptive to the idea of a sequel, and although other executives remained noncommittal, Giler's development executive, Larry Wilson, began looking for a scriptwriter by mid-1983.[24][25] Wilson came across the script for the in-development science fiction film, The Terminator (1984), written by James Cameron. Based on Cameron's collaborative scriptwriting efforts alongside Sylvester Stallone on Rambo: First Blood Part II (1985), Wilson decided to show the script for The Terminator to Giler, Hill, and Carroll.[28][29] In November 1983, Cameron submitted a 42-page film treatment for Alien II—written in three days—based on Giler and Hill's suggestion of "Ripley and soldiers".[24][25][30] The studio had a mixed reaction, one executive calling it a constant stream of horror without character development.[24][25] Negotiations to sell the sequel rights to Rambo's developers Mario Kassar and Andrew G. Vajna
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