FrameStore, specialists in visual effects and computer animation for commercials, film and broadcast television, and Computer Film Company (CFC), renowned for its award-winning digital film effects, as well as pioneering development in digital film, have merged. The newly rebranded company is named Framestore CFC and will be led by a single management team, headed by joint chief executives Sharon Reed and William Sargent. The 240 staff positions and the senior management team remain unchanged.

Design and production studio Charlex has formed a 3D department, adding new equipment and creative talent to the company’s existing setup. Bryan Godwin, formerly of Blue Sky Studios, heads the new team of 3D artists -- who bring extensive experience in the worlds of feature film and videogame production. The new group has recently completed a holiday spot for AT&T, and two spots for Sunny Delight.

TV-Loonland has formed an alliance with Artists Management Group’s Animation & Family Entertainment Department to produce a minimum of four animated television series over the next three years. Artists Management Group (AMG), co-founded by Michael Ovitz, Rick Yorn and Julie Silverman-Yorn, represents many well-known talents in the animation arena including RUGRATS creators Paul Germain and Joe Ansolabehere, director Henry Selick (THE NIGHTMARE BEFORE CHRISTMAS) and animation studio Film Roman.

Lego Company Signs Co-Publishing Deal With Electronic Arts. Entertainment software company Electronic Arts (EA) has inked a deal with the privately owned LEGO Company where EA will co-publish and provide marketing support for more than 30 LEGO software titles on a minimum of four platforms over a three-year period. LEGO Company and EA will create software targeted to young gamers, while building current franchises and establishing new ones. Current franchises include: LEGO RACERS, BIONICLE and GALIDOR: DEFENDERS OF THE OUTER DIMENSION. Financial terms of the agreement were not disclosed.

NBC has confirmed it will lease its Saturday morning block to Discovery Networks, beginning in fall 2002, reported VARIETY. Discovery is reportedly putting up $18 million for a three-year contract. "This is a strategic move to keep NBC competitive in the kids arena," explained NBC West Coast president Scott Sassa, who said that without a weekday platform, it was difficult to promote the Saturday morning block. The block is currently 2 and 1/2 hours of programming, and will be jointly branded by Discovery and NBC.

Los Angeles-based design studio B1 Media has launched a games division, B1/Games, and hopes to develop products for set-top game consoles. B1 Media has primarily been a provider of interactive design for DVDs and has created games and interactive content for numerous DVD titles like DINOSAUR, UNBREAKABLE, THE SIXTH SENSE and PLANET OF THE APES. The company also recently launched a broadcast design division, B1/Broadcast.

Toonz Animation India has acquired Toonsense Studios in Mumbai, India. Focusing on the creation of traditional animation for the advertising community Toonsense Animation Studios has created animation for dozens of diverse television commercials, combining traditional animation with live-action and computer graphics. Toonsense founders Suhael Merchant and Shrirang Sathaye will remain with the company.

R!OT and Liberty Livewire LLC's Interactive Services Group, both units of Liberty Media Group, have launched a joint venture aimed at developing interactive television applications. Under the plan, R!OT will link its broadcast post-production services with the Interactive Services Group's Web authoring, data management and e-commerce services. As part of the new venture, Liberty Livewire's Interactive Services Group has relocated its creative staff to the R!OT campus in Santa Monica.

After a four-year organizing drive, the membership of the Motion Picture Screen Cartoonists, Local 839 IATSE (M.P.S.C. Local 839) has unanimously ratified a collective bargaining agreement with BKN Studios, Inc. (BKN). "The BKN contract marks the successful end of one of the longest organizing drives in the union's history," business representative Steve Hulett said after the vote at the local's membership meeting on November 27, 2001. M.P.S.C.

An AP Newswire brief stated that Sega Corp. has reported a $169 million loss for the first fiscal half, largely because the declining value of its investments more than offset the improvement in its video-game business. Sega, which earlier in 2001 abandoned production of its Dreamcast game system, has also announced another reduction in price for the discontinued console. The Dreamcast system, which originally retailed for $199, will now be available for $49.99. Sega hopes the drastically reduced price will move the remaining 270,000 units out of stores by the end of the holiday season.