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.

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.

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.

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.

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.

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.

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.

Activision, Inc. has been recognized by Fortune Magazine as one of the top 100 fastest-growing publicly held companies in the U.S. Activision, ranked 86th in Fortune Magazine's 2001 "100 Fastest-Growing American Companies," is the only interactive entertainment company to appear on the list. The company's three-year annualized performance ratings were 45% earnings per share, 36% revenue growth and 56% total stock market return.

Executive producer John Yuiska and creative director Daniel Garcia have joined forces with Vienna-based digital content studio .voortekk to form Super-Fi. The company will produce animation and design-based cross-platform content for commercials, broadcast design, music videos, film and branded online entertainment. Super-Fi will maintain offices in New York and Vienna.

THQ Inc. and Sega Corporation have entered into an exclusive, multi-title co-publishing agreement under which THQ will co-publish 16 Game Boy Advance titles featuring Sega brands in North America through 2003. The launch will begin with six titles released through March 2002. The agreement provides Sega with greater exposure on the Game Boy Advance platform as it transitions exclusively to software publishing and provides THQ with content to help solidify its position as a leading independent Game Boy Advance publisher.

Vivendi Universal Publishing (VU Publishing) and Interplay Entertainment Corp. have entered into a North American distribution agreement which grants VU Publishing the exclusive rights to distribute Interplay's PC and video game console products through 2003 with the exception of NEVERWINTER NIGHTS. The first titles expected to be released under the distribution agreement will be BALDUR'S GATE: DARK ALLIANCE and GIANTS: CITIZEN KABUTO for the PlayStation2 computer entertainment system. These titles are scheduled for release in fall 2001.

Activision, Inc. has acquired Treyarch Invention, LLC., a leading console software developer with a focus on action and action-sports video games. The acquisition further enables Activision to implement its multi-platform development strategy by bolstering its internal product development capabilities for the next-generation console systems, strengthening Activision's position in the action and action-sports genres.

As reported on October 4, 2001 by THE HOLLYWOOD REPORTER, Square Company Ltd., warning of losses of up to 13.9 billion yen (USD $115M) for the year's first half from weaker-than-expected revenues from its feature film FINAL FANTASY: THE SPIRITS WITHIN, had ceased funding of their Honolulu-based studio Square Pictures. Allowed to continue operations, Square Pictures has indicated that they will continue to develop CGI projects with funding from other studios, and plans to possibly develop a FINAL FANTASY sequel or prequel.

Infogrames, Inc., a global publisher of interactive entertainment software, has announced operating results for its fiscal year ended June 30, 2001. Full-year net revenue, which includes publishing and distribution revenue, was $310.5 million or virtually even with full-year net revenues of $313.2 million for the prior year. Publishing revenue for the period rose to $232.1 million from $188.4 million in the comparable year-earlier period. Distribution revenue was $78.4 million in fiscal 2001 as compared with distribution revenue of $124.8 million in the same 2000 period.

The Walt Disney Company has formed a new business unit, the Buena Vista Game Entertainment Studio, a new organization created to leverage and combine new and emerging technologies, such as broadband and wireless, with video consoles, PCs, other technological innovations, and online games to deliver integrated interactive entertainment for a new consumer experience. Jan E. Smith has been installed as its president. Smith, a 14-year Disney veteran, will also continue to serve in her current role as president of Disney Interactive.

Turner Broadcasting System (TBS) Latin America, Inc. has reached an agreement with DIRECTV Latin America, LLC (DIRECTV) for satellite distribution in Latin America of Boomerang, the 24-hour network that offers classic animated entertainment. Launched into the Latin American region in July of 2001, Boomerang continues to expand its reach in the market by adding DIRECTV's satellite distribution. Reaching more than 1.4 million direct-to-home customers, DIRECTV Latin America becomes one of the largest distributors for Boomerang in the region.