Netflix is acquiring Australian animation studio Animal Logic, which is producing films for the streamer including “The Magician’s Elephant,” directed by Wendy Rogers, and “The Shrinking of the Treehorns,” directed by Ron Howard.
Animal Logic has about 800 employees, mostly based in Sydney and Vancouver. The acquisition “will help us accelerate the development of our animation production capabilities and reinforces our commitment to build a world-class animation studio,” Netflix said in its Q2 letter to shareholders.
The company did not disclose the purchase price for Animal Logic but said it will fund the acquisition from cash on hand. Netflix expects to close the later this year, subject to certain regulatory approvals.
“Together, we’ll create an animation studio that will produce some of our largest animated feature films,” Netflix said in the letter.
The move comes after Netflix axed several animated projects in May, including “Wings of Fire” from executive producer Ava DuVernay; “Antiracist Baby,” a series aimed at preschoolers; and “With Kind Regards From Kindergarten.”
Founded in 1991, Animal Logic’s film work has included “Captain Marvel,” The Lego movies, “Peter Rabbit,” “Legend of the Guardians: The Owls of Ga’Hoole” and “Happy Feet.”
In May, Netflix signed a multiyear deal renewal with VFX and animation company DNEG, under which the streamer expects to spend at least $350 million with the company through 2025.
Separately Tuesday, Netflix disclosed a $70 million charge related to layoffs in the second quarter. The company reported a net loss of 970,000 subs, about 1 million fewer than originally forecast.
“The Magician’s Elephant” is based on two-time Newbery Award winning author Kate DiCamillo’s classic novel. When Peter (voiced by Noah Jupe), who is searching for his long-lost sister named Adel (voiced by Pixie Davies), crosses paths with a fortune teller in the market square, there is only one question on his mind: is his sister still alive? The answer — that he must find a mysterious elephant and the magician (voiced by Benedict Wong) who will conjure it — sets Peter off on a harrowing journey to complete three seemingly impossible tasks that will change the face of his town forever.
In May, Netflix announced the pickup of “The Shrinking of the Treehorn,” an animated musical film set in New York City during the holidays, directed by Howard and written by Rob Lieber. The film, produced by Animal Logic and Imagine Entertainment, is based on the children’s book by Florence Parry Heide with illustrations from Edward Gorey, originally published in 1971. Previously, Paramount Pictures had been on board as the distributor.
Pictured above: “The Magician’s Elephant” from Animal Logic