Netflix plans to acquire Sydney-based Animal Logic, an animation studio that has worked on hits from Happy Feet to The Lego Movies, the companies said in a statement on Tuesday. The move will accelerate Netflix's efforts to build end-to-end animation production capabilities, the statement said. The streaming service has produced several animated titles including Oscar-nominated films Over the Moon and Klaus.
"Netflix has been investing in animation over the past few years and this furthers our commitment to building a world-class animation studio," Amy Reinhard, Netflix vice president of studio operations, said in a statement.
The acquisition, which requires regulatory approvals, was announced just ahead of Netflix's quarterly earnings report. Netflix said it expects the deal to close later this year.
On Tuesday, the streaming service averted its own worst-case scenario of subscriber losses, posting a nearly 1 million drop from April through June, and predicted it would return to customer growth during the third quarter.
Terms were not disclosed.
Under the agreement, Animal Logic animators will form a global production studio with Netflix teams to work on some of the streaming service's biggest titles, the statement said.
Led by CEO and co-founder Zareh Nalbandian, Animal Logic is headquartered in Sydney and operates a second studio in Vancouver. The current teams and leadership will remain in place and will continue to work with other studios, the statement said.
Netflix and Animal Logic already are working on upcoming films The Shrinking of the Treehorns, directed by Ron Howard, and The Magician's Elephant.
Netflix will continue to work with other animation studios, the statement said.
© Thomson Reuters 2022
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