DQ Ent. Ltd., a leading animation, gaming and vfx company based in Hyderabad, South India, announced a joint venture with French production company Onyx Films to produce CG-animated feature films, according to THE HOLLYWOOD REPORTER.

Additionally, DQE announced it will take a 20% equity stake — worth about $3.2 million — in Paris-based TV production company Method Films.

VFX powerhouse studio Digital Domain has received a $31 million investment from Falcon Investment Advisors and GunnAllen Financial.Rafael Fogel, a principal at Falcon, will join the Digital Domain board of directors, which is led by Digital Domain co-chairmen John Textor and director Michael Bay.

The Walt Disney Co. plans to acquire Hungama TV, a leading Indian children's television channel, and take an equity interest in media company UTV Software Communications Ltd. as the media giant strengthens its presence in a rapidly growing media market, where local content production is key. Both transactions are subject to certain conditions and regulatory approval.

Hungama TV coo Zarina Mehta will work with the Disney team on the organizational and operational integration of Hungama TV into Disney's portfolio of kids' channels.

THQ Inc. has formed its new development team, Incinerator Games, the latest addition to THQ's growing internal studio system. Based in Carlsbad, California, Incinerator is comprised of veterans of the TWISTED METAL, NFL GAMEDAY and MLB 2006, the show projects from Sony's 989 studios, as well as the Midnight Club franchise from ROCKSTAR. Incinerator is primarily focused on development for next generation consoles.

In a new Chinese government regulation, the censoring process of domestic animation will be sped up to aid the development of the industry, reports XINHUA.

Starting in August 2006, the State Administration of Radio, Film and Television (SARFT) will decide whether or not to approve animated productions every month. Previously, regulators only authorize productions twice a year — in January and July.

Bauhaus Software, a leading provider of 2D animation and vfx tools, has received a strategic investment from the State of Texas Emerging Technology Fund (TETF). This funding will be used to expand Bauhaus’ development team, invest in more research, develop new products, and augment marketing. Bauhaus is also focused on furthering relationships with South Texas colleges & universities, through both R&D exchange programs and internships.

AMD and ATI will join forces in a transaction valued at approximately $5.4 billion. The combination will create “a processing powerhouse by bringing AMD’s technology leadership in microprocessors together with ATI’s strengths in graphics, chipsets and consumer electronics.” The result: A new and more formidable company, determined to drive growth, innovation and choice for its customers, particularly in the commercial and mobile computing segments and in the rapidly growing consumer electronics market.

Rainmaker has agreed to purchase 62% worth of outstanding shares of Mainframe Ent. Inc. from IDT Ent. Inc. and its affiliates. The acquisition is expected to close on July 31.

Following the closing of the acquisition from IDT, Rainmaker intends to acquire the balance of the shares of Mainframe. If Rainmaker acquires all the remaining shares of Mainframe at the intended price, the aggregate acquisition purchase price to Rainmaker for all shares of Mainframe will be approximately $13.8 million.

At a special meeting on July 21, 2006, Genius Products Inc. stockholders approved a deal that will see The Weinstein Co. Llc. control 70% of the company.

Under the terms of the transaction, Genius Products will retain 30% of the firm. The board of directors also increased from four to six members with the addition of two TWC execs, Larry Madden, evp/cfo of TWC, and Irwin Reiter, evp of accounting and financial reporting of TWC.

Nina Jacobson is out and marketing head Oren Aviv is in as president of production, Walt Disney Pictures, as chairman Dick Cook announced the anticipated restructuring and downsizing of The Walt Disney Studios. Aviv will oversee the live-action development and film production slate.

Thus, there will be a strategic shift toward more Disney branded movies aimed at global synergy across all entertainment platforms. The studio will produce and distribute approximately 10 Disney live-action and animated films a year and two to three Touchstone films a year.