San Francisco’s animation studio Wild Brain, Inc. is expanding its global operation with the launch of a subsidiary in Munich, Germany. Wild Trixx Media GmbH will identify co-production partners for television and feature film projects, coordinate sales and merchandising for the company’s future and existing programming, such as Wild Brain’s new 26-episode series POOCHINI, throughout Europe, and attract European-based commercials.

DIC Entertainment Holdings, Inc. has entered into an agreement to purchase the assets of Golden Books Family Entertainment, Inc., in a deal valued at $170 million. The deal entails a Chapter 11 bankruptcy filing by Golden Books and its domestic subsidiaries, with DIC petitioning to purchase the company’s assets. Golden Books’ operations will continue as usual during the court and sale process, which is expected to take approximately 60 days. Golden Book’s assets are quite extensive.

CINAR Corporation announced that it has reached an agreement with Telefilm Canada to make full restitution for all investments and other financial subsidies made by Telefilm Canada in CINAR’s productions that have been decertified, or for productions for which final certification will not be granted by the Canadian Audio-visual Certification Office (CAVCO). Under the terms of the agreement, CINAR will repay Telefilm Canada approximately $2,594,000 in full reimbursement of investments and subsidies including interest.

The Harvey Entertainment Company announced on June 26, 2001 that they have completed their sale of Harvey’s classic cartoon characters, contracts and related assets, to Classic Media, LLC, in exchange for approximately US$17,000,000 and the assumption of certain liabilities. Actual funding of the transaction took place on Friday, June 22, 2001. Harvey has also officially changed its name to Sunland Entertainment Co. Inc. with the new OTC Bulletin Board stock symbol of SUNE. The name and stock symbol change will take effect Wednesday, June 27, 2001.

Midway Games Inc. has announced that as a result of decreasing demand in the coin-operated arcade videogame market, it is getting out of that business. The company is now focusing its game development efforts exclusively on games for next-generation home videogame platforms, including the PlayStation 2, Xbox, Nintendo GameCube and Game Boy Advance. The move is expected to mean a layoff of fewer than 60 people, and a primarily non-cash pretax charge of less than $8 million in the quarter ending June 30, 2001.

According to a June 21, 2001 report in the Los Angeles Times, Ben Stein, host of the Comedy Central TV game show "Win Ben Stein's Money" has sued Shockwave.com for breach of contract. In the suit, filed in Los Angeles County Superior Court, Stein claims he is owed $212,250 for his work in helping to develop an online quiz show. In exchange for the use of his name, voice and likeness, Stein reportedly was to receive 75,000 shares of Shockwave stock valued at 50 cents a share, with an option to sell back the stock at nearly $3 per share. The show has yet to launch on the Web.

In an effort to maximize shareholder value, The Harvey Entertainment Company announced on June 18, 2001 that it has retained the investment banking firm of Houlihan Lokey Howard & Zukin to explore strategic alternatives and opportunities, following the completion of its pending transaction with Classic Media LLC. Founded in 1970, Houlihan Lokey Howard & Zukin provides a wide range of services including mergers and acquisitions, private placements and other financial advisory services. The firm is ranked among the top 10 financial advisors in U.S. mergers and acquisitions under $500 million.

In an announcement made June 20, 2001, by Michael D. Eisner, chairman and CEO, and Robert A. Iger, president and COO, of The Walt Disney Company, Peter Schneider will step down as chairman of The Walt Disney Studios to start a new Broadway theater production and investment company funded in part by Disney.

DIC Entertainment has signed an exclusive North American home video distribution deal for its extensive library of animation with Lions Gate Home Entertainment. This move marks the first deal for DIC's Worldwide Home Entertainment division since CEO Andy Heyward, along with Bain Capital, purchased DIC back from Disney in November 2000. The first releases on VHS and DVD slated for August are SABRINA, THE ANIMATED SERIES and MUMMIES ALIVE! Other titles set for release include MADELINE, SONIC THE HEDGEHOG, CARMEN SANDIEGO, INSPECTOR GADGET and ACTION MAN.

London-based production company Stink has launched Skunk, a new animation house producing music videos, commercials and short films. The first project for the new company will be three spots for whisky brand Famous Grouse via ad agency Abbott Mead Vickers. Prague-based director Michal Zabka will helm the spots.