According to Variety the film is set to begin production this August with Melissa McCarthy attached to star, help with script revisions and, along with her husband Ben Falcone, produce.
A Deadline article from 2015 stated that "the story follows puppet stars of an iconic TV show The Happytime Gang who are some of the biggest celebrities around. But off-camera, the family-friendly cast leads the kinds of lives that would make a tabloid writer blush. When the Happytime Gang stars begin to be mysteriously murdered, two mismatched detectives – one a type-A, take-no-prisoners human with a secret and the other a crass, hard-drinking puppet with a connection to one of the victims – must put aside their huge differences to stop the killings and catch the culprit, all the while trying to resist the temptation to murder each other."
When asked about the film, McCarthy said “When a really good script combines puppet strippers, Los Angeles’ underbelly, and comedy, it’s like my fever dream has finally come true,”
Last year it was reported that Jamie Foxx was considering the leading role.
STX Films Chairman Adam Fogelson said, “Melissa McCarthy is the reigning queen of comedy and we believe she will make ‘The Happytime Murders’ the kind of hysterical, edgy, viral event that audiences today crave. This is the kind of script and material that was made for Melissa’s smart and boundary-pushing sensibilities. Having worked with her years ago on ‘Bridesmaids’ and ‘Identity Thief,’ I could not be more delighted or excited to be working with her again.”