Interactive entertainment producer NewKidCo International Inc., which develops games based on popular licensed characters such as WINNIE THE POOH and THE MUPPETS, announced its 2nd quarter 2002 results. The company had a net loss of $1.8 million for the quarter versus a net loss of $8.5 million for the same period last year. Income for the six months was a loss of $3.6 million versus a loss of $8.2 million last year, with revenue for the three and six months at $1.2 million and $3.1 million respectively versus $1.7 million and $5.3 million for the same period one year ago.

C21 Media reports that HIT Entertainment has finalized its acquisition of Gullane, in a deal worth approximately US$215.2 million. Gullane had consistently rebuffed HIT's acquisition proposals until July 2002, when Gullane's directors agreed to a takeover by HIT following support from major shareholders Britt Allcroft and Angus Wright. Adam Mills, chairman of Gullane said: "After careful consideration and a comprehensive review of alternatives, the Board has concluded that an acquisition of Gullane by HIT is in the best interests of shareholders.

Korean animation studio Sunwoo Entertainment has announced the establishment of Sunwoo USA, headquartered in Burbank, California. The U.S. headquarters will be the new business development, talent recruiting and international content development arm of Sunwoo Entertainment, which has produced hundreds of episodes of television series including RUGRATS for Nickelodeon, PEPPER ANN and RECESS for Disney and THE FAMILY GUY for Fox. Jae Moh, the executive vice president of Sunwoo Entertainment, will become the CEO and president of Sunwoo USA.

Brooklyn, New York is the home of a newly formed animation studio called Dancing Diablo. The studio set up shop in January 2002, and has already taken on some high profile projects, including work on Fox Kids' upcoming series TEENAGE MUTANT NINJA TURTLES. Founded by director / illustrator / motion designer Beatriz Helena Ramos, who at age 22 founded Caracas Comics Studio in her native Venezuela and has worked on such projects as MTV DOWNTOWN and John R.

According to THE HOLLYWOOD REPORTER, DreamWorks is in the process of enhancing its animation production capabilities and hopes these enhancements will cut the production time for CG animated features in half. This would allow DreamWorks to release two to three animated features per year. DreamWorks just closed two major financing transactions totaling $1.5 billion. The new financing consists of a $1 billion film securitization, which DreamWorks is labeling the first of its kind in the film industry, as well as a $500 million revolving credit facility.

Independent animation company Film Roman has reported that revenue increased by 18% or $1.7 million, to $11.1 million for the quarter ended June 30, 2002 compared to $9.4 million for the quarter ended June 30, 2001. The revenue increase is attributed to the delivery of more fee-for-services television episodes. Net loss attributable to common stock for the second quarter of 2002 was ($169,756) or ($0.02) per share compared to a net loss attributable to common stock of ($1,293,641) or ($0.15) per share for the second quarter of 2001.

Egmont Imagination, the international animation arm of Danish production and distribution company Egmont Entertainment, will be closed, according to a report in VARIETY. The announcement comes on the heels of Egmont joining forces with Danish film and television producer Nordisk Film in mid-August 2002. The new company will now be known as Nordisk Film.

The law firm of Weiss & Yourman has filed a class action lawsuit on behalf of purchasers of securities of the Walt Disney Company between August 15, 1997 and May 15, 2002. The complaint alleges that Disney and some of its officers and directors violated the Securities Exchange Act of 1934 by failing to disclose to the investing public the existence, details and potential effects of a pending lawsuit over merchandising rights concerning WINNIE THE POOH.

UK-based distributor HIT Entertainment has announced the opening of HIT Entertainment Canada, Inc. Officially launched on August 1, 2002, the Toronto-based office will function under the leadership of vice president Pam Westman, and is comprised of an entirely Canadian staff who are responsible for video, DVD and audio sales and distribution, as well as marketing, consumer products, licensing and broadcast sales for HIT's brands in Canada. "HIT recognizes the importance of having a corporate office in Canada," said Rob Lawes, CEO, HIT Entertainment.

The Animation Guild, Local 839 IATSE (formerly Motion Picture Screen Cartoonists) has signed a contract with Spaff Animation for work on Disney's upcoming theatrical release JUNGLE BOOK 2, as well as the direct-to-video release LION KING 1 1/2. Long-time animation vet Dave Spafford, who was a lead animator on WHO FRAMED ROGER RABBIT, THE SECRET OF NIMH, OLIVER AND COMPANY, THE FOX AND THE HOUND and many others, runs Spaff Animation, which has provided animation for a wide variety of projects for the past 15 years.