Netflix Acquires Animation Studio Animal Logic in All-Cash Deal

Netflix has acquired Australian animation studio Animal Logic, which produces films for the streamer including “The Magician’s Elephant,” directed by Wendy Rogers, and “The Shrinking of the Treehorns,” directed by Ron Howard .

Animal Logic has about 800 employees, mostly in Sydney and Vancouver. The acquisition “will help us accelerate the development of our animation production and strengthen our commitment to build a world-class animation studio,” Netflix said in its Q2 letter to shareholders.

The company did not disclose the purchase price for Animal Logic but said it will pay the proceeds from cash on hand. Netflix plans to close at the end of this year, due to some legal restrictions.

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“Together, we will create an animation studio that will create one of our greatest films,” Netflix said in a shareholder letter.

Launched in 1991, Animal Logic’s film production includes The Lego Movie, the two “Peter Rabbit” films, “Legend of the Guardians: The Owls of Ga’Hoole” and “Happy Feet.” The studio has also produced visual effects for films including “The Matrix,” “Moulin Rouge!”, “300” and “The Great Gatsby” and “Captain Marvel.”

His move to acquire Animal Logic comes after Netflix killed several animated projects in May, including “Wings of Fire” from company creator Ava DuVernay; “Antiracist Baby,” a story about preschoolers; and “With love from kindergarten.”

However, Netflix announced its “ambitious” movie, including “Over the Moon” and “Klaus” nominated for Oscar and the newly released “The Sea Beast” from Disney veteran Chris Williams.

Netflix said that Animal Logic, led by CEO and co-founder Zareh Nalbandian, will continue to operate under the name Animal Logic and “enable the production of existing projects and continue to and continue to collaborate and collaborate with longtime studio partners.”

“Netflix has been investing in animation in recent years and this has increased our commitment to building a world-class animation studio,” said Amy Reinhard, Netflix VP of studio operations, in of a language. “Animal Logic is a leading animation studio with the latest technology to strengthen our existing business and expand our long-term capabilities in the animation space, so that we can better entertain our members around the world.”

Nalbandian said in a statement provided by Netflix, “After 30 years of creating great projects with great people, this is the perfect chapter for Animal Logic. Our experience is unparalleled. values ​​and our ideas with Netflix, in collaboration with various content producers, creating innovative and interesting stories for audiences around the world. Our vision team and our talent will open new doors for all of our team and inspire a new level of creativity in animation.

In May, Netflix signed a new one-year deal with VFX and animation company DNEG, under which the streamer expects to spend about $350 million with the company until 2025.

On Tuesday, Netflix reported a $70 million charge related to layoffs in the second quarter. The company reported a loss of 970,000 subs, about 1 million less than the previous forecast.

“The Magician’s Elephant” is based on Newbery Award winning author Kate DiCamillo. When Peter (voiced by Noah Jupe), searching for his long-lost sister Adel (voiced by Pixie Davies), crosses paths with a witch in a shopping mall, only one asked what he thought: was it his sister. alive? The answer – he must find a mysterious and magical elephant (voiced by Benedict Wong) who will enchant him – sets Peter on a dangerous journey to complete three irreversible tasks in the face of his city forever.

In May, Netflix announced the filming of “The decline of the tree“a musical film set in New York City during the holidays, directed by Howard and written by Rob Lieber. The film, produced by Animal Logic and Imagine Entertainment, about the children’s book by Florence Parry Heide with illustrations by Edward Gorey, first published in 1971. Originally, Paramount Pictures was on board as a distributor.

Image above: “The Magician’s Elephant” from Animal Logic

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