Warner Bros. is behind the project that would be directed by Portlandia co-creator Jonathan Krisel, with 21 Laps' Shawn Levy set to produce with Michael Aguilar, and Entertainment 360, the production arm of Management 360.
The movie, which would likely include appearances from Sesame Street residents Big Bird, Oscar the Grouch and Cookie Monster, is said to be a musical. Chris Galletta (Kings of Summer) wrote the most recent draft of the screenplay.
Warners would co-finance the movie with MGM.
While Hathaway is the first choice for the project and has an offer, it is currently unclear if the Oscar winner will accept the role. Sesame Street would reteam her with Warner Bros., the studio that was behind her last release, this summer's Ocean's 8, and MGM, which is behind her upcoming movie, the Dirty Rotten Scoundrels remake The Hustle.
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