Category: Business

(Colossal) Pictures will ceaseoperations on August 31, 1999 after 23 years in business. According to theSan Francisco-based production and design studio, the decision was made inorder to liquidate property and honor outstanding debts. (Colossal) hasfiled for Chapter 11 protection before on May 30, 1996, and emerged frombankruptcy on December 1, 1997. It enjoyed a successful year in 1998,employing a lean work force. However, the beginning of this year saw adownturn in revenue. Financially weakened by the bankruptcy, as (Colossal)

San Jose, California-based Silicon Graphics Inc. has announced that it willcut up to 3,000 jobs and spin off its Cray supercomputer division.According to SGI, the cuts and reorganization will help it focus on sellingsoftware and computers related to the Internet. SGI bought Cray ResearchInc. in 1996 for $740 million. Since its acquisition by SGI, Cray'ssupercomputers have competed with SGI's own powerful systems in a smallmarket. Earlier this year SGI reorganized and divided Cray off into a

IMAX Corporation, owner of the large format film theater chain, hasannounced the closing of its strategic investment in Vancouver,Canada-based Mainframe Entertainment Inc., a producer of CGI animation.Under the terms of the agreement, IMAX invested CDN$8 million to acquire a19% equity stake in Mainframe and CDN$8 million to acquire convertiblesenior debt which, if converted, could bring IMAX's ownership up to 30% ofMainframe. Simultaneously, Mainframe announced that two leading Canadian

Cartoon Network is forming Cartoon Network Studios, an independentproduction facility to develop and produce original animated programmingfor the 24-hour, all-cartoon cable channel. The new, Los Angeles-basedfacility, due to begin operation by the end of the year, will give CartoonNetwork more control over series development, production, andadministration procedures. Among the series that the new studio willproduce are the currently airing THE POWERPUFF GIRLS, JOHNNY BRAVO, and

Walt Disney-owned companies Touchstone Television Productions and ABCTelevision Group are merging to form ABC Entertainment Television Group.According to ABC Television Group president Pat Fili-Krushel, "The goal inconsolidation is to produce creative results that result in more Disneyproduct on ABC and also allow us to achieve economies of scale." In otherwords, this consolidation will likely result in more Disney-producedtelevision programming appearing on ABC (Touchstone currently has only two

The Walt Disney Co. and former Disney head executive Jeffrey Katzenberg have settled a lawsuit for undisclosed terms, thus ending a months long public trial. Since it began in April, the trial has produced many headlines as Katzenberg sought to secure from Disney two percent of future income derived from all movies, TV shows and merchandise made while he was studio boss from 1984 to 1994. Katzenberg estimated his share of the bonus, which was part of his employment contract with Disney, to be anywhere between $382 million and $580 million in court filings.

Chromacolour, an international leader in the manufacture and sale of traditional and digital animation materials, software and equipment, has just moved their manufacturing operation to a new 20,000 square foot facility in North East Calgary, Canada. This is also the location of their global headquarters and Sales and Distribution center. The company's European Sales and Distribution center has been recently relocated to a new facility in London, England as well.

Warner Bros. is combining its feature and TV animation divisions under one roof in Sherman Oaks, California, and TV Animation President Jean MacCurdy will take on the responsibilities of supervising the production of Warner's animated features. Lorenzo di Bonaventura, President of Worldwide Theatrical Production, will continue to supervising the creative side of animated feature production.

Computer Cafe has opened a full service animation studio in Santa Monica,California. The 1400 square foot site, in the heart of Santa Monica's mediadistrict, will be staffed by art director/digital artist Ron Honn, who isrelocating from the company's Santa Maria headquarters, and producerJonathan Stone, who joins the company from Saban Entertainment. Artistsfrom the Santa Maria facility will staff up the Santa Monica studio on aproject basis, and the company will also staff the new site with local

Toonz Animation India Pvt. Ltd., a new animation production studio inIndia, will have a limited opening in August, with an official openingfollowing November 1-5, 1999. Toonz will offer a full-range of productionservices for episodic television series and commercials. Toonz will also bededicated to developing original pilot shows based on Indian folklore andmythology. "India has a rich treasury of folklore which will form the basisfor many of our pilot shows," states Bill Dennis, President and CEO. In its

Retired Los Angeles County Superior Court judge Paul Breckenridge has ruledthat Jeffrey Katzenberg, the former head of Disney's film unit, did notforfeit a lucrative bonus when he left the company in 1994 and is entitledto interest on any money he is owed. Judge Paul Breckenridge issued hisdecision Wednesday and will next hear testimony to determine exactly howmuch money Disney should pay. Katzenberg, who left Disney in 1994 after hewas denied a promotion, is suing Disney for what he says is at least $250

Macromedia (NASDAQ:MACR) has announced a 47% increase in revenues for thefourth quarter ended March 31, 1999. Revenues for the fourth quarter were$44,097,000 as compared with $30,012,000 in the same period a year ago.Gross profit increased 44% to $39,867,000 as compared with $27,653,000 inthe fourth quarter a year ago. Net income rose to $7,343,000, or $0.16 pershare, during the fourth fiscal 1999 quarter, compared to net income of$1,991,000, or $0.05 per share, a year ago.