Netflix to Acquire Animation Studio Animal Logic in All-Cash Deal

variety.com:

Todd Spangler NY Digital EditorNetflix is acquiring Australian animation studio Animal Logic, which is producing 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 based in Sydney and Vancouver.

The acquisition “will help us accelerate the development of our animation production capabilities and reinforces our commitment to build a world-class animation studio,” Netflix said in its Q2 letter to shareholders.Click here to sign up for Variety‘s free Strictly Business newsletter covering earnings, financial and investment news, and more.The company did not disclose the purchase price for Animal Logic but said it will fund the acquisition from cash on hand.

Netflix expects to close the later this year, subject to certain regulatory approvals. “Together, we’ll create an animation studio that will produce some of our largest animated feature films,” Netflix said in the letter.The move comes after Netflix axed several animated projects in May, including “Wings of Fire” from executive producer Ava DuVernay; “Antiracist Baby,” a series aimed at preschoolers; and “With Kind Regards From Kindergarten.”Founded in 1991, Animal Logic’s film work has included “Captain Marvel,” The Lego movies, “Peter Rabbit,” “Legend of the Guardians: The Owls of Ga’Hoole” and “Happy Feet.”In May, Netflix signed a multiyear deal renewal with VFX and animation company DNEG, under which the streamer expects to spend at least $350 million with the company through 2025.Separately Tuesday, Netflix disclosed a $70 million charge related to layoffs in the second quarter.