Walt Disney has announced that Disney Stores president Peter Whitford is stepping down and the firm is looking to sell its 548-store chain with locations throughout the U.S. and Europe. The retail stores have struggled in the past few years and U.S. stores have been downsized from 522 to 387. In 2001, Disney sold all its stores in Japan to Oriental Land Co., which runs the Tokyo Disney Resort theme park. However, Disney says it will hold onto the six Disney Stores in Hong Kong, in anticipation of the opening of Hong Kong Disney in the beginning of 2006.

London-based Entertainment Rights (ER), a leading media firm in the ownership and distribution of children's and family entertainment, has some good news and some bad news. ER has a distribution deal with Mattel Inc. for U.K. rights to the next Barbie CGI feature, BARBIE OF SWAN LAKE, but has also announced that Mattel will not be renewing the licensing agreement with ER subsidiary Link Licensing for the U.K. representation of certain non-doll Barbie merchandise and publications.

Post-production company PostWorks New York has made a major move, acquiring all of Tapehouse companies, including Tapehouse Editorial, Tapehouse Digital Film, Tapehouse Broadband, Black Logic and The Anx, as well as all of SMA Realtime and 50% of audio post house Caterini Studios. With the acquisition, PostWorks will be equipped to handle every aspect of digital or film post-production for both short-form and long-form television, film and multimedia projects.

By an overwhelming vote, the members of the Animation Guild and Affiliated Optical Electronic and Graphic Arts, Local 839 IATSE have ratified a new collective bargaining agreement with the major animation producers. The new Animation Guild agreement offers the same wage minimum increases, health and pension benefits as the IATSE Hollywood Basic Agreement, which was agreed to in November 2002 and ratified in February 2003.

CinéGroupe has made its major theatrical project, P3K: PINOCCHIO 3000 available for licensing. Carlton consumer division is already onboard to handle licensing, theatrical, publishing, broadcast and video rights in the U.K.

Newark, New Jersey-based IDT Media announced May 15, 2003 that its animation production unit, Digital Production Solutions (DPS), will acquire a 51% interest in Film Roman, Inc., a leading independent animation company, through the purchase of newly issued shares of Film Roman common stock. Film Roman produces the animation on the primetime hits THE SIMPSONS and KING OF THE HILL. IDT Media is a subsidiary of IDT Corp., a multinational carrier, telecommunications and technology company.

George Lucas has divided his empire in Point Richmond, California into a new animation division to focus on the creation of digitally animated feature films reportedly due to his frustration over studio-controlled animated projects that have fallen through over the past six years. Lucas-film Animation will be given its own identity and autonomy to develop and generate full-length CG cartoons.

The following is a letter from Joseph Barbera read at the Hollywood Hills West Neighborhood Council along with a statement from Alan Leib, chairman of The Modern Committee of the L.A. Conservancy to support saving the Hanna-Barbera building.

Dear members of the Hollywood Hills West Neighborhood Council,

First, I’d like to thank you for your time and interest in a subject very near and dear to my heart; the facility at 3400 Cahuenga Boulevard.

Leading videogame publisher Infogrames Entertainment SA (IESA) has changed its corporate name to Atari. Infogrames (New York City and Lyon, France) acquired the Atari brand when it bought the interactive assets of toymaker Hasbro in January 2001 and has periodically used the name, one of the oldest (30 years) and most legendary in videogame history, for titles such as DRAGON BALL Z, MISSION IMPOSSIBLE, SUPERMAN, TERMINATOR 3 and ENTER THE MATRIX, which debuts on May 15, 2003, day and date with the film, THE MATRIX RELOADED.

In response to recent attention surrounding childhood obesity and lack of nutrition in school lunch programs, Nickelodeon and East Side Entrees have partnered to offer Nickelodeon-branded milk in school lunches nationwide starting in September 2003. The first character-licensed milk to be distributed nationally in schools, the milk cartons will display images from JIMMY NEUTRON, ROCKET POWER, THE WILD THORNBERRYS and SPONGEBOB SQUAREPANTS. Flavored nutritionally fortified packaged milk products will be for kids 6-11, and milkshakes will be available for kids 11-17.

Chel White, Ray Di Carlo and David Daniels have combined strengths to form an artist-driven studio Bent Image Lab, in Portland, Oregon. "Our mission is to generate the future in 'mixed media/animation/live-action'," said partner/executive producer Di Carlo. "We are artists doing business, not businessmen trying to make art." Di Carlo however, has a successful business background and will operate Bent under a highly unique business model.

Viacom-owned Showtime Networks Inc. (SNI) has laid off 70 workers, roughly 10% of its staff, on May 5, 2003, primarily in the areas of affiliate relations, marketing and creative services. This follows on the heels of rival HBO eliminating 20 jobs the previous week.

The Henson family is the winning bidder to buy 100% of The Jim Henson Company from German kids TV outfit EM.TV Merchandising AG for $89 million. Recently Disney, Saban and Sony Pictures had appeared to be the likely buyers. The Henson heirs sold the company to EM.TV three years ago for $680 million and now are set to pay $78 million in cash plus $11 million of the Henson Co. assets.

McFarlane Toys has created adult collectible figures based on the second and third installments of THE MATRIX trilogy, THE MATRIX RELOADED and THE MATRIX REVOLUTIONS. On May 15, 2003, Warner Bros. Pictures, in association with Village Roadshow Pictures and NPV Entertainment, will release THE MATRIX RELOADED, the second installment of the Academy Award-winning blockbuster THE MATRIX. The third chapter, THE MATRIX REVOLUTIONS, will be released later in 2003.

S4 Studios a traditional/3D animation design and content creation studio founded in 1999 in the San Fernando Valley, has opened its new studio in the heart of Hollywood. The new facility, located at 1529 N. Cahuenga Boulevard, will allow the growing studio greater access to its core businesses of trailers, network graphics and TV commercials while continuing to develop original content for motion pictures, television, direct to video and online.

DIC Entertainment has sued Speed Racer Enterprises to enforce DIC’s television, merchandise and other ancillary rights to the animated series SPEED RACER, which is airing weekly on the Nickelodeon network. DIC is seeking damages of $5 million plus punitive damages and injunctive relief for fraud, breach of contract, injunctive relief, conversion, slander of title and a number of other causes of action in case filed with Los Angeles Super Court.

Broadcast design industry leaders Paul Newman, Jim Moran and Gary Bonilla have formed CO-OP, a new advertising and design company in New York City that operates as the strategic core of a network of partners with a full range of complimentary creative companies. CO-OP offers its clients brand strategy and brand development through advertising, vertical marketing, business to business communication, direct marketing, interactive, brand design and identity and broadcast design.