[Nosferatu@Cult Labs]

Originally Posted by gag

As it stands doesnt look like there be a Babadook sequel
The Babadook 2 Is Never Going To Happen: And Here's Why That's Good — moviepilot.com

Good. I imagine those who, like me, love the film think a sequel would ruin Jennifer Kent's movie. Those who don't like the film dislike it for a number of reasons and would be entirely disinterested in a follow-up or prequel. It's definitely a lose-lose case as the film would have no target audience and probably be a critical and commercial flop.