VirtualMagic Animation, the North Hollywood-based digital ink, paint and compositing company and former production division of USAnimation, is on the block. According to president Don Spielvogel, the company is being put up for sale by its investors as a result of the changing dynamics of the cartoon animation business in the U.S., as well as the wishes of its non-animation industry investors to move on.

Kidz Kraze International has been appointed licensee for THE SIMPSONS' inflatable figures, in a deal with FOX Licensing. In 2003, the company plans to launch the line of inflatables, including family members Homer, Bart, Marge, Maggie and Lisa, along with townspeople such as Mr. Burns, Krusty The Clown and Comic Book Guy. Kidz Kraze will feature THE SIMPSONS' inflatable figures at the New York International Toy Fair, February 16-19, 2003 in Room 554.

According to the latest sales figures from market information company The NPD Group, total U.S. retail sales of video game hardware, software and accessories in 2002 grew 10% from the previous year. The video game industry generated $10.3 billion in sales, surpassing the previous record high of $9.4 billion in 2001. The NPD Group credits the healthy increase in sales to the success of key properties such as: GRAND THEFT AUTO: VICE CITY, MADDEN NFL 2003, SUPER MARIO SUNSHINE, SPIDER-MAN: THE MOVIE, HALO and TOM CLANCY'S SPLINTER CELL.

Discreet has entered into an exclusive development and distribution partnership with New Orleans-based Turbo Squid, Inc., the world's premier marketplace for online digital assets. Turbo Squid will act as the worldwide developer, publisher and distributor for the Discreet Certified 3ds max Plug-in Program. Working together, Discreet and Turbo Squid will carefully select plug-ins that bring compelling value to 3ds max artists.

Sesame Workshop and Mervyn's department stores have entered into an exclusive agreement to bring merchandise featuring characters from SAGWA, THE CHINESE SIAMESE CAT, a PBS KIDS' series, to Mervyn's 264 stores. From January to March 2003, the retailer will feature SAGWA characters on children's products such as bedding, clothing, plush and watches. A percentage of the proceeds of all SAGWA merchandise sold will support Sesame Workshop educational programs around the world.

Kim Mitzo Thompson and Karen Mitzo Hilderbrand, the founders of Twin Sisters Productions, Inc., have repurchased from CINAR Corporation the company they founded. The deal was concluded on January 13, 2003 for US$1.5 million. The sale also settled the outstanding litigation claims against CINAR by Twin Sisters.

Former Nelvana executive Toper Taylor has formed ToperTaylor.com, a Los Angeles-based marketing firm specializing in all areas of kids and family entertainment.

New York's Abandon Entertainment is making inroads in the Japanese market with the help of agency Creek & River. Abandon has teamed with Creek & River to gain direct access to unique and untapped Japanese properties across television, comic books, anime and games. The company, which includes Abandon Television, Abandon Internet Group and Collision Entertainment, hopes to access properties that have the potential to be exploited internationally across multiple distribution platforms.

Raven Moon Entertainment, Inc., a producer of children’s programming based in Orlando, Florida, plans to spin off Raven Moon Home Video Products LLC into a separate publicly traded corporation. Pending shareholder approval, the spin-off would take place by the end of April 2003. The proposed spin-off is expected to reduce Raven Moon Entertainment's debt by approximately $1,000,000.

Marvel Enterprises and video game publisher Activision, Inc. have signed a multi-year extension for their current video game licensing agreements, expanding their strategic alliance. The expanded agreements grant Activision the exclusive rights to develop and publish video game products based on Marvel's comic book franchises SPIDER-MAN, X-MEN, FANTASTIC FOUR and IRON MAN through the year 2009.

The Walt Disney Company can rest easy for another twenty years as the Supreme Court has upheld a 1998 Congressional Act extending existing copyrights. On Wednesday, January 15, 2003, the justices voted 7-2 to uphold the Copyright Term Extension Act (CTEA), a 1998 law that extended millions of existing copyrights by an additional 20 years.

Creative edit house Northern Lights Post has launched a visual effects design division, which will be headed by effects artist/designer Tera Petersen. Petersen's experience includes CG/design work on commercials for Pepsi, Doritos 3D and Fruitopia, among others. "This is a natural progression for Northern Lights," said Northern Lights co-founder/editor David Gioiella.

In an effort to strategically streamline and organize its children's television animation programming, production and distribution under one business unit, Disney has moved Television Animation into the Disney Channel Worldwide division with former Television Animation executive vice president Barry Blumberg replacing David Stainton as president, Walt Disney Television Animation.

Toronto-based independent animation company Cuppa Coffee is not for sale. Owner Adam Shaheen reportedly turned down a US$38 million offer from a U.S. and Japan-based broadcast consortium. According to a statement released by Cuppa Coffee, the consortium offered Shaheen a deal which involved expanding the Toronto facility and opening a second studio in Tokyo that would create series animation exclusively for the Asian market. Shaheen responded saying, although the offer was flattering, he was never seriously interested.

All the speculation that the Muppets might join Mickey Mouse as part of the Disney family seems to have been for naught, as German entertainment company EM.TV and Merchandising AG announced that it has completed a letter of intent with a U.S. investment group for the partial sale of The Jim Henson Company, Inc. (JHC). EM.TV acquired 100 percent of Jim Henson in 2000 and then put the company on the block in 2001.

FUNimation Productions, Ltd. has awarded JAKKS Pacific, Inc. the master toy license for DRAGON BALL, DRAGON BALL Z and the forthcoming DRAGON BALL GT. JAKKS will develop, manufacture and distribute action figures, action figure accessories and vehicles based on these animated series. The company, which acquired the license after original rights holder, Irwin Toy, Ltd., announced bankruptcy in early December 2002, signed a 3-year license for the DRAGON BALL brands and expects to show new products as early as the New York International Toy Fair in February 2003.

Illuminati Entertainment, a new management and production company focusing on clients with backgrounds in comic books and video games, has been founded by producer Ford Lytle Gilmore, former vice president of development at Goodman/Rosen Productions. In addition to representing its roster of clients and their properties, the company's mandate is to build new brands and franchises that can crossover into comics, games and toys.

The U.K. MEDIA Desk is now offering U.K. industry professionals the opportunity to apply for development funding for long fiction, documentary, animation and multimedia projects. The MEDIA Plus program, based in Brussels, is calling U.K. production companies to apply for development funding for their projects throughout the first six months of 2003. The funding covers single projects and slate funding. The final date for submissions is June 16, 2003. In 2002, £1.6 million was awarded to U.K.

The animated adventures of MR. BEAN is heading to Scandinavia. The 26 x 30-minute series has been sold to SVT, Sweden and YLE, Finland by Fremantle International Distribution, which distributes both the original live-action series and the animated series. SVT will start to broadcast the series on December 23, 2002 and it will run through early February. The series launch date on YLE is still to be announced. MR.

The Eskimo that has had a place on the tail of all Alaska Airlines aircraft for over a quarter century is stepping down from one plane to make room for some popular Disney characters. Alaska Airlines has launched the "Spirit of Disneyland" Boeing 737-400 aircraft, which features the faces of Mickey and Minnie Mouse, Donald Duck and Goofy painted on a bright blue background.