In further belt-tightening, the Walt Disney Co. plans to shut down Walt Disney Animation (Japan) in Tokyo. Part of DisneyToon Studios that specializes in DVD-premieres (101 DALMATIANS II: PATCH'S LONDON ADVENTURE) and smaller-budgeted theatrical releases (PIGLET'S BIG MOVIE, THE TIGGER MOVIE), the Japanese facility employs about 100 animators and will cease operations after completing the WINNIE THE POOH spin-off, THE HEFFALUMP MOVIE. Work for 2004 and beyond will quickly segue over to Walt Disney Animation (Australia), which recently made JUNGLE BOOK II.

Gearing up for its work on the 3D/CG animated feature VALIANT, Vanguard Animation has opened a full-scale, computer-animation studio at London's Ealing Studios. The production is taking over a newly renovated, 10,000 square foot site. The storyboarding, character design and production design to date has been created in L.A., with many of that crew coming to London for the commencement of the full animation production. Starting with a crew of 75, the production will finally employ more than 120. The film plans to be in production over the next 18 months.

As anticipated, the board of directors of AOL Time Warner Inc. has voted to rename the company Time Warner Inc. The name change also includes the adoption of a new stock symbol: TWX" -- Time Warner's symbol on the New York Stock Exchange from before the merger.

"We believe that our new name better reflects the portfolio of our valuable businesses and ends any confusion between our corporate name and the America Online brand name for our investors, partners and the public," chairman and ceo Dick Parsons said in a prepared statement.

Newark, New Jersey-based Digital Production Solutions (DPS), the animation unit of IDT Media, continues its buying spree, having signed a letter of intent to acquire a controlling interest in Mainframe Entertainment, Inc., a leading Canadian creator of computer animation for TV and direct-to-video products.

Following the demise of Egmont Imagination earlier this year, the company's former U.K. managing director, Tatiana Kober, has launched Bejuba! Entertainment, based in Toronto with an office in Los Angeles. The company will specialize in financing, exploitation and distribution of intellectual property rights across all key markets and platforms.

"It doesn't look good," remarked a Disney insider when asked about the prospects of renewing its partnership with Pixar Animation Studios. "It's not a slam dunk, but that doesn't mean it won't work out either," remarked another studio insider. Now THE LOS ANGLES TIMES reports that Disney and Pixar are far apart in their contract negotiations, which Disney co-chairman Michael Eisner would like to conclude by the studio's next board meeting on Sept. 23, 2003.

A federal judge dismissed a shareholder lawsuit against Walt Disney Co. on Sept. 9, 2003 that claimed the company had defrauded investors by hiding potential damages at stake in a separate legal dispute over WINNIE THE POOH merchandise, REUTERS reported.

Sony Pictures Entertainment (SPE) continues to expand its global cable and satellite networks portfolio with the launch next month of AXN in six European countries -- Poland, Hungary, the Czech Republic, Slovakia, Romania and Bulgaria. As part of that expansion, Tom Davidson has been named new network's gm, based in Budapest, according to Darren Childs, svp of international networks, Sony Pictures Television International (SPTI).

The partners behind the summer’s surprise hit 28 DAYS LATER, Fox Searchlight Pictures and DNA Films have announced a five-year, $50 million joint production and distribution deal, reported the HOLLYWOOD REPORTER. DNA Films operates on unused U.K. lottery funds and first needed approval by the U.K. Film Council before the agreement could be signed. The new joint venture will remain with the name DNA Films and producer/exec Andrew Macdonald has been hired to head up the company.

Big Idea Prods has announced an agreement with Classic Media LLC to purchase the company’s assets. As required by the deal, Big Idea has filed a Chapter 11 bankruptcy case in the United States Bankruptcy Court for the Northern District of Illinois.

Opponents of the FCC approved changes in media ownership regulations got a reprieve Sept. 3, 2003 when a federal judicial panel temporarily blocked the rules from taking effect as they were scheduled to the following day, Sept. 4. A three-judge panel of the Third U.S. Circuit Court of Appeals in Philadelphia, Pennsylvania issued a stay order preventing the regulatory agency from loosening ownership rules pending further proceedings.

Former EYE Animation creative director Ian Bird has opened Bird Studios, a CG/3D animation production studio in London. The studio is working on various feature film, commercial and music video productions. It recently wrapped on the animated video for Iron Maiden entitled, WILDEST DREAMS. Bird Studios’ animation team storyboarded and animated the video from director Howard Greenhalgh’s script. The team at Bird is comprised of award-winning animators and illustrators with backgrounds in film, BBC, documentaries, history of art and classic comic illustration.

Whamo Ent’s partners Joseph Szew, Fernando Szew and Mar Gaya, along with PorchLight Ent’s Michael Jacobs and Anchor Bay Ent’s George Port, have formed Mar Vista Entertainment, reported DAILY VARIETY. The new company will produce and distribute family and children's productions. Joseph Szew will serve as president/ceo and his brother will be managing director. Based in Barcelona, Gaya will be the director of European operations. Jacobs, former svp of worldwide sales for PorchLight, will serve as president of production and distribution.

It took a while for AWN to hear from animation and vfx people in New York City and areas in the U.S. affected by the massive power blackout on Aug. 14, 2003. Between downed power grids, tied up telephone lines and the subsequent attack of the BIG computer virus, communication is just now returning to normal. However, a few brave souls managed to share how their shops were disrupted in our increasingly power-hungry industry and lessons they learned for the next outage.

Quiet Man

Dae Joong Kim, a veteran animation director for 36 years, has joined Cyper Entertainment Inc., subsidiary of JRE Inc., based in Seoul, Korea. Considered one of the top OEM animation directors in Korea, he has worked on many different animated TV shows such as SUPER MARIO, FUTURE BOY CONAN, CAPTAIN HARLOCK, GALAXY EXPRESS 999 AND NADIA, among others.

"Mr. Kim is a valued addition to our team as we prepare for several large film and television productions. We are excited to have him in our service," said Duk Jim Jang, president of JRE.

The following is a statement from Jason VanBorssum in response to a story about the demise of Cornerstone Animation that appeared in the AWN Flash and on the AWN.com Website on August 12, 2003. AWN is happy to present all sides as the parties make themselves available for comment.

Statement by Jason VanBorssum
August 15, 2003

The sale is complete, U.S. billionaire Haim Saban took control of German broadcaster ProSiebenSat.1 by acquiring a majority stake from the insolvent parent house KirchMedia. The deal was finalized August 9, 2003 with Kirch’s creditor banks and the transaction is expected to be completed this week. Saban acquired 36% of the share capital of ProSiebenSat.1, which gives him and his investors 72% of the company’s voting rights.

Cornerstone Animation is missing one of its cornerstones with the recent departure of president/ceo Jason Marshall VanBorssum, who unexpectedly cleaned out his office at the studio in Glendale, California, leaving company files in disarray and its workers unpaid, AWN confirmed with founder/chief creative officer Larry Whitaker. “Although we have been forced to shut our doors, we have not filed bankruptcy to date.

Atari Inc. (Nasdaq: ATAR) has filed a registration statement with the Securities and Exchange Commission for a proposed offering of $125 million of common stock. In the proposed offering, shares will be sold by Atari and by Infogrames Entertainment, S.A., which owns approximately 88% of the outstanding Atari shares. Atari and Infogrames will grant the underwriters an option to purchase additional shares of its common stock valued at up to $18.75 million to cover over-allotments.

Vancouver-based Mercury Filmworks is broadening its digital production scope in Canada with the addition of an Ottawa-based animation studio. Under the direction of former Funbag animation director Jerry Popowich (KING, UNDERGRADS, FREAKY STORIES, WATERSHIP DOWN, NEVER ENDING STORY, THE SIMPSONS, THE CRITIC, PINK PANTHER, TALES FROM THE CRYPT KEEPER), Mercury Filmworks’ new studio will offer design, pre-production and digital animation capabilities.