Jon Landau assures that talks are happening for Alita 2 and explains how Avatar: The Way of Water will influence the sequel. Alita: Battle Angel hit theaters in 2019 and followed the titular cyborg as she discovered the truth about her identity, her friends, and the people who run the city she lives in. The movie ended on a cliffhanger, setting up a potential sequel, which dedicated fans have been clamoring for ever since.
https://screenrant.com/avatar-way-of-water-alita-2-impact-how/
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