Animation producer Millimages is expanding into German territory with the acquisition of 51% of the Hamburg-based animation company, Toons ‘n’ Tales. This latest acquisition follows the company’s announcements in 2001 of the launch of Millimages USA, headed by Dorian Langdon, and the international distribution center, Millimages London. Toons ‘n’ Tales managing director and co-founder Sunita Struck, will continue to oversee the company in partnership with Millimages.

4Kids Entertainment International has signed a number of new licensees for its Japan-acquired CGI-animated series CUBIX – ROBOTS FOR EVERYONE led by master toy licensee Trendmasters, with a collectible action toy line featuring interactive cards. The Character Group has been named the U.K. distributor and will be showcasing the line at the International Toy Fair in London in January 2002. Other licenses signed for the international market include 3DO (videogames) and Scholastic (publishing). CUBIX premiered in the U.S. August 2001 on Kids' WB! The show will debut in the U.K.

Under the terms of a recently announced worldwide licensing, Vivendi Universal Publishing's Knowledge Adventure studio will develop and publish BUTT-UGLY MARTIANS interactive entertainment products for the PC/Mac, console, handheld, PDA, wireless and Internet platforms beginning in fall 2002. The products will be distributed worldwide by Vivendi Universal Games.

U.K. independent Tiger Aspect Productions (TAP) has created a new animation division and upped Claudia Lloyd, former creative director of comedy and entertainment at Tiger Aspect, to head of animation. With the creation of an animation division, TAP is pursuing an active animation development slate. Currently, producer Chris Skala is developing EARTH KID, a series to be co-produced with Cartoon Pizza for the 6-12 year old age group. Lloyd would like TAP to produce only two or three mainstream or children’s and family specials or series per year.

Toy producer Rocket USA has teamed with Twentieth Century Fox Licensing & Merchandising and Matt Groening to make a line of tin toys, games and collectibles based on THE SIMPSONS. The toy producer will introduce the line with an 8-1/2" tin walking wind-up version of Homer Simpson. The figure comes in collectible packaging and will carry a suggested retail price of $24.95.

In a move to promote long-term growth of his businesses, George Lucas announced that he is bringing Lucas Digital, LucasArts Entertainment, Lucas Licensing and Lucasfilm Ltd. into one organization, as Lucasfilm president Gordon Radley leaves the company. Lucasfilm CFO Micheline Chau has been promoted to the position of chief operating officer to oversee the new unified company and to guide all of the business units.

Corus Entertainment’s Nelvana scored a slew of sales at this year’s NATPE show, including an output deal with Venezuela’s Venevision for four shows per year plus first look options. Other programming deals saw ABC-TV Australia license seven shows including FRANKLIN THE TURTLE, LITTLE BEAR and BLAZING DRAGONS and Panamanian broadcaster FETV has agreed to a package deal of over 100 half-hours of animation.

Corus Entertainment’s Nelvana and Japanese publisher Kodansha Ltd. have entered into a partnership to jointly develop new children’s properties. The agreement expands on their existing relationship that has produced BABAR’S ADVENTURES, and seen the acquisition of CARDCAPTORS and the Fox Kids program MEDABOTS. Under the terms of the three-year partnership agreement, Nelvana will be given first look on all Kodansha projects for possible co-production or acquisition of distribution rights for non-Asian countries.

Australian visual effects companies Photon VFX and GMD have formed a strategic alliance and will begin their collaboration as joint visual effects contractors for the Disney production of INSPECTOR GADGET 2. The film, which is currently shooting on location in Brisbane, Australia, is a direct-to-video project from Disney. The eight-week shoot is will utilize Photon's motion-control services during production. Post-production is slated for completion by mid-2002.

Following in the footsteps of NBC, which recently leased its Saturday morning block to Discovery Networks, Fox Broadcasting has turned over its Saturday morning programming to 4Kids Entertainment, Inc. Beginning September 2002, 4Kids will provide all programming content for FOX's Saturday morning broadcast block, which commences at 8 am ET/PT (7 am CT). Fox hopes that 4Kids’ shows will help the network maintain its competitive edge in the key young boys’ demo.

Activision, Inc. has exercised its option to acquire the remaining 60% equity interest in Gray Matter Interactive Studios. Under the terms of the agreement, Gray Matter Interactive Studios will become a wholly owned subsidiary of Activision. Activision issued 133,690 shares of common stock in connection with the acquisition. "Gray Matter has a very talented team of programmers, designers and artists and we are confident that the studio's development strengths will further establish Activision as a leader in the PC action genre," stated Ron Doornink, president and COO of Activision.

Iwerks Entertainment Inc. and Toronto-based SimEx Inc., have confirmed the completion of their previously announced merger. Iwerks is now a wholly owned subsidiary of SimEx Inc. The merger was made final on January 9, 2002. Pursuant to the terms of the merger, each share of Iwerks' issued and outstanding common stock, other than shares held in its treasury, was cancelled and automatically converted into the right to receive approximately $0.63 in cash, without interest. On the effective date, Iwerks had 3,554,301 shares of common stock issued and outstanding.

Independent animation studio Wild Brain, Inc. has signed a co-production and development deal with Denmark's Egmont Imagination. The first co-production between the two companies is a 26 x 30' CG-animated series VANILLA PUDDING. The series will feature a quirky little girl who imagines herself as a superhero to handle the trials and tribulations of growing up. VANILLA PUDDING was created by in-house Wild Brain director Nicholas Weigel, with the pilot script penned by Emmy Award winner Sherri Stoner (TINY TOONS, ANIMANIACS, CASPER).

Nelvana has acquired exclusive worldwide rights to produce a television series, made-for-video programs, theatrical motion pictures, and individual programs including made-for-television specials and movies, based on THE BERENSTAIN BEARS. Nelvana has already secured a relationship with Columbia Tristar to distribute THE BERENSTAIN BEARS videos in the United States; the first release is slated for 2003. In addition, Berenstain Enterprises, Inc. granted Nelvana worldwide merchandising and licensing rights.

Troubled German media company EM.TV’s new CEO Werner Klatten is close to closing the previously announced purchase of a 25.1% stake (approximately 36.2 million shares) in the company from founder and former president Thomas Haffa. Klatten is working with a venture capital firm to secure financing for the deal, which is scheduled to be completed by the end of January 2002. The acquisition is currently estimated at US$60 million.

Scholastic Corporation has acquired Tom Snyder Productions from Canadian-based publishing company Torstar Corporation for US$9 million. Included in the purchase is the company’s television animation production division Soup2Nuts, producers of Comedy Central’s DR. KATZ and Cartoon Network’s HOME MOVIES. Tom Snyder Productions, a leading developer and publisher of award-winning educational software will be part of the interactive educational software division reporting to Margery Mayer, executive vice president of learning ventures.

Interactive software developer and distributor THQ Inc. has completed its acquisition of digital entertainment creator Rainbow Studios by issuing 858,203 shares of common stock. These shares are subject to adjustment pending the determination of Rainbow's net book value. THQ also assumed existing Rainbow stock options providing for the further issuance of 106,259 shares of THQ common stock. Rainbow Studios is now a wholly owned subsidiary of THQ. Mark DeSimone and Tony Sutterheim will continue to manage Rainbow Studios as president, games and president, animation, respectively.

Iwerks Entertainment Inc. and Toronto-based SimEx Inc., have had their previously announced merger approved by Iwerks shareholders. When the merger is completed, Iwerks will become a wholly owned subsidiary of SimEx Inc. and cease being traded on the OTC Bulletin Board. The merger was expected to close December 28, 2001 but did not, and no new date has been set. Iwerks and SimEx continue to discuss the merger and related activities. Iwerks Entertainment Inc., founded in 1986, is the number one provider of 8/70 Large Format Theater systems worldwide and the industry leader in ride simulation.

Independent animation studio Mercury Filmworks recently opened a full feature and episodic television production facility in Toronto, Ontario. The expansion has nearly doubled the company’s studio capacity and increased its talent to 120 employees in Vancouver and Toronto. A deal with Nelvana Limited to work on a 13-episode season of RESCUE HEROES II allowed Mercury the resources to open the Toronto location. Mercury successfully wrapped the RESCUE HEROES II series at the end of October 2001. The series airs on Teletoon in Canada and Kids’ WB! in the U.S.

Apparel brand and licensing company The Cherokee Group has agreed to represent DIC Entertainment's property LIBERTY'S KIDS and engineer strategic licensing agreements for the animated show. LIBERTY'S KIDS, an educational series depicting the events and people surrounding the United States' fight for independence, will debut in the fall of 2002 on PBS. The show will be airing a minimum of five days a week for two years. The series will feature personalities such as Walter Cronkite, Dustin Hoffman, Ben Stiller and Whoopie Goldberg in voice-over roles portraying historical figures.