Blue Sky Studios, currently at work on the upcoming CG animation feature ICE AGE, has laid off a significant number of their animators. Sources say approximately 100 people have been let go, which could not be confirmed by Fox as of press time. However, a Fox rep did concur that animators have been laid off because the studio is ramping down as principle animation on ICE AGE is nearing completion. The Fox corporate representative also said that Blue Sky has a project in development that has not yet been announced.

Pixar Animation Studios, which currently has the United States’ top motion picture for a second week in a row, recently reported a 30 percent decline in third quarter earnings. Pixar said earnings fell to $6.2 million or 12 cents per diluted share in the third quarter, which concluded at the end of September 2001, a month before MONSTERS, INC. hit theaters. This figure is down from $8.8 million or 18 cents per share in the period a year ago. Pixar also announced that it is raising projections for 2001 EPS from the previous range of $0.50 to $0.58, to a new estimate of about $0.60.

In further developments of the MTV restructuring that has so far resulted in layoffs and the closing of MTV Animation production, Abby Terkuhle is no longer president of MTV Animation. However, according to an MTV spokesperson, Terkuhle will continue his relationship with the company, although the nature of this relationship could not be discussed at press time. Sources suggest that Terkuhle will have a first look producing deal or some similar arrangement.

In a follow up to a story about the Secret Lab closing that was written in VARIETY and subsequently reported in AWN and numerous other media outlets, AWN was told that the layoffs were part of an overall restructuring of Disney, including the feature animation department, that was announced in April 2001.

Liberty Livewire Pictures Group member R!OT Santa Monica will be integrating both artists and support staff from sister company 525 Studios. As a result, 525 Studios will curtail operations, effective by year's end.

The LEGO Company has partnered with Canadian entertainment company CinéGroupe and secured full global merchandising rights to the television show GALIDOR: DEFENDERS OF THE OUTER DIMENSION. The show is scheduled to premiere in February 2002 on the Fox Kids Network in the U.S. and on YTV in Canada. The series GALIDOR: DEFENDERS OF THE OUTER DIMENSION is inspired by Web characters created by writer-creator-producer Tom Lynch, and combines live-action with computer-generated animation, 3D backgrounds and special effects.

According to a VARIETY news report, layoffs may be imminent at newly acquired Fox Family Worldwide. The Walt Disney Company recently completed their buy out of Fox Family for a final purchase price of $5.2 billion and the changes have already begun. The company’s flagship Fox Family cable channel has been renamed ABC Family and it will be rebranded with an interim ABC Family logo starting this weekend.

In an attempt to reach a previously announced goal of making its online gaming unit successful by the year 2003, game company Electronic Arts (EA) said it will cut as many as 250 jobs at its EA.com division, reported REUTERS. The cuts represent about 1/3 of EA.com’s employees. Electronic Arts employs over 3600 people worldwide and is the number one video game publisher in the U.S. The company is also the exclusive game provider to AOL. EA’s first foray into the subscription online gaming arena, the five-episode suspense thriller MAJESTIC, launched online in August 2001.

Interactive media provider Pulse has inked a deal with text-to-speech (TTS) technology provider Rhetorical Systems making Pulse the exclusive North American reseller of Rhetorical Systems' technology for Web-based solutions. Under the agreement, Pulse will integrate Rhetorical Systems' rVoice software and sell interactive media solutions featuring a selection of character and photo-real 3D personalities with automated lip-synching and realistic human speech in both genders and a range of accents and speaking styles. Specific financial details of the agreement were not disclosed.

Corus Entertainment's Nelvana has acquired all proprietary rights to BABAR. Laurent de Brunhoff, son of BABAR creator Jean de Brunhoff, made the deal through The Clifford Ross Company on behalf of the de Brunhoff family. The Nelvana acquisition includes 100 percent of all trademarks and copyrights to the BABAR property, as well as the de Brunhoff family's financial interests in the brand. The de Brunhoff family has reserved certain publishing rights, which will allow Laurent de Brunhoff to continue publishing his own BABAR books.

Activision, Inc. has discontinued its previously announced public offering of common stock due to current market conditions. The company has filed with the Securities and Exchange Commission an application for the withdrawal of its registration statement covering the 6 million shares of its common stock that were to be issued in the proposed public offering. The company has also discontinued any further marketing efforts in connection with the offering. However, the company’s Board of Directors has approved a three-for-two split of its outstanding common shares.

The 3DO Company has finished the fiscal second quarter ended September 30, 2001 in line with expectations. Revenues were $9.9 million, compared to $20.2 million reported for the second quarter of last fiscal year. The net loss for the quarter decreased by 42% to $9.7 million, or $0.20 per share, compared to a loss of $16.7 million, or $0.45 per share in the same quarter last year. The company recorded an adjustment to the second quarter of the prior fiscal year, which resulted in a reduction of $1.8 million of revenue and $0.5 million in cost of sales.

Disney has announced plans to close The Secret Lab, the visual effects unit of its Feature Animation group. The Secret Lab was formed two years ago, emerging from Oscar-winning effects house Dream Quest Images, which was founded in 1979 and became a division of Disney in 1996. In a VARIETY report, Walt Disney Feature Animation president Thomas Schumacher stated that The Secret Lab is no longer actively seeking outside contracts. However, he also said, “If the studio comes to me and says here’s a movie that we have a special demand for, then fantastic.

On Monday, October 29, 2001, MTV Networks announced a worldwide restructuring plan resulting in 450 lay-offs, approximately 9% of its full-time staff. The departments most significantly affected are the online divisions and MTV Animation. The once separate online operations will be integrated with the television businesses meaning staffers for the online division will be moved out of their current location at 770 Broadway and merged with the television operation in midtown Manhattan. This move represents the majority of the staff cuts.

The Walt Disney Company has completed its previously announced acquisition of Fox Family Worldwide, Inc. from Haim Saban and Fox Broadcasting Company. The acquisition closed on October 21, 2001 with a final purchase price of $5.2 billion, including approximately $2.9 billion in cash and the assumption of $2.3 billion in Fox Family. Michael D.

Canadian family entertainment company CINAR Corporation has recently repaid an existing bank loan which was due on October 15, 2001. The corporation had US$26 million outstanding as of November 30, 2000 and this amount has now been repaid in the current fiscal year.

Taking a cue from such successful children’s programs turned stage shows like BARNEY and BLUE’S CLUES, one of TV's longest-running animated series, SCOOBY DOO comes to life. The live-action stage show SCOOBY-DOO IN STAGEFRIGHT - LIVE ON STAGE will debut on October 26, 2001 at the Palace Theater in Louisville, Kentucky. The live show is scheduled to perform in 28 cities throughout the United States and Canada.

Avid Technology, Inc. has reported its financial results for the third quarter ended September 30, 2001. Revenues for the quarter were $102.3 million. Net loss for the quarter was $14.2 million or $.55 per share including amortization of acquisition-related intangible assets, and restructuring and other costs, net. Excluding these items, Avid would have reported a net loss of $801,000 or $.03 per share for the third quarter of 2001. For the nine months ended September 30, 2001, revenues were $329.8 million.

California-based chain Ralphs Supermarket has partnered with Walt Disney Pictures and Pixar Animation Studios, to allow its shoppers to earn free movie tickets to the animated feature MONSTERS, INC. based on their grocery purchases over a four-week period. From October 3 through October 30, 2001, Ralphs customers who accumulate $300 in grocery purchases using their Ralphs Club Card will earn two free tickets (adult matinee or child admission) to MONSTERS, INC. The free tickets may be used at any theater showing MONSTERS, INC. from November 2 to November 18, 2001.

Fox Entertainment Group has teamed with eBay to support Auction for America, the online charity initiative designed to raise funds for the victims, families and communities affected by the terrorist attacks of September 11. The auctions began October 22, 2001 and will continue through the holiday season. All proceeds will be donated to the Twin Towers Fund.