In a global partnership that includes Disney consumer products, theme parks and resorts, and an array of promotional initiatives, the Walt Disney Company and Kellogg Company announced a new global, multi-year corporate alliance. Kellogg, the world's leading producer of cereal, will have exclusive rights to develop and market co-branded Disney/Kellogg breakfast foods based on Disney characters. In addition, Kellogg will become the "official sponsor of breakfast" at Walt Disney World, Disneyland Resort and Disneyland Paris.

The Walt Disney Company and News Corporation have entered an agreement to establish a joint venture company to launch a new broadband entertainment service called Movies.com, which will provide movies and other entertainment content on demand to consumers in the U.S. Movies.com, expected to launch in early 2002, will be available to consumers with enhanced cable systems with on-demand capabilities, as well as all forms of broadband Internet access.

Evans & Sutherland Computer Corporation (E&S) has reached an agreement to sell its REALimage business unit, which makes high-performance semiconductor chips for advanced graphics and video applications. The sale is for a maximum value of $12 million, consisting of cash plus future royalties up to $6 million for REALimage technology, other assets and support during a seven-month transition period leading to closing the transaction on April 1, 2002.

Walt Disney Internet Group and Hutchison Telecommunications (Hong Kong) Limited (Hutchison Telecom) have entered into a cooperative relationship to distribute Disney-branded wireless content under the Disney Mobile brand over Hutchison Telecom's Orange Dualband and CDMA networks in Hong Kong. Available this fall, the Disney Mobile service on Hutchison Telecom will include downloadable content based on Disney's lineup of popular characters, including screensavers, wallpapers, logos, e-cards and ring tones. Orange users will also be able to download the territory's only Disney color content.

Autodesk announced that it has signed an agreement to acquire the software product line from Media 100, a leading provider of digital media products. With this acquisition, Autodesk’s Discreet Division enhances its content creation product portfolio with Media 100’s streaming media software solutions -- allowing Discreet customers to create, distribute, re-purpose and publish media content for consumption via the Internet, corporate Intranets and IP-enabled devices such as cell phones and PDAs.

European media company TV-Loonland Group’s net income for the first half of 2001 increased by an additional 80 percent over last year, to EUR 8.2 (approx. USD 7.5) million due to a strong international marketing strategy. The group has already realized more than 60 percent of the EUR 13.3 (approx. USD 12.1) million total net income budgeted for the year 2001. Revenues increased by 39.7 percent to EUR 34.2 (approx. USD 31.1) million, also showing much stronger growth than in the first quarter. TV-Loonland AG continues to operate debt-free.

Continuing to expand and broaden the scope of his companies’ services, Harley’s House founder Harley Rinzler, has acquired the Los Angeles computer animation, design and visual effects production studio Click 3x. Rinzler has retained the key members of Click 3x, Los Angeles’ creative and production staff, including visual effects supervisor Craig Price who will serve as creative director. Rinzler will operate the visual effects and animation service as an independent entity under the name Playground.

Iwerks Entertainment Inc. and SimEx Inc. announced that both companies have signed an agreement and plan of merger. The agreement provides that SimEx will acquire Iwerks in exchange for cash consideration of approximately US $0.63 per share of Iwerks common stock. The transaction is subject to shareholder approval and other customary closing conditions. If the two companies combine, it is expected that Iwerks will retain its brand name and identity and will continue operations in Burbank, California under the existing Iwerks management team.

Industry professionals Maurice Kimball and Briar Lee Mitchell have co-founded Pasadena, California-based Digital Ink Illustration (Dii), a digital background paintings company. Services will include conceptual design and layout for animation or live-action, digital color comps/color keys and fully rendered digital files for animation and live-action backgrounds, overlays, underlays, flattened or layered files. Cedric Tomacruz has been named art director for the new firm.

Microsoft has announced that it will delay the launch of its next-generation console Xbox in Japan until 2002. Xbox will still release 800,000 units in North America on November 8. The Japan launch will now coincide with the launch in Europe. Japan represents one third of the US$20 billion videogame market. Insiders say the delay is due to difficulties in developing games for the Japanese market, which favors simulation and role-playing games, as well as problems ensuring that all tech components work together correctly. Xbox will sell for US$299 in North America.