Warner Bros. Discovery to spend more than $1 billion downsizing underperforming animation division
Warner Bros. Discovery to Spend More Than $1 Billion Downsizing Underperforming Animation Division
To reduce its Animation Production budget for the studio, Warner Bros. has agreed to sell off three animation divisions: Warner Animation Group, Warner Bros. Animation and The Weinstein Company’s The Family Circus, for a total of $1 billion. The deal will take place early next year.
The deal will reduce the studio’s Animation Production budget from $2.1 billion a year to $1 billion a year. It will reduce the animation division’s domestic budget to $1.25 billion from $1.5 billion and international budget to $1.5 billion from $2 billion.
Warner Animation Group, which includes Warner Bros. Animation, Warner Home Video, DC/Warner Bros. Consumer Products, Warner Bros. Consumer Products, Warner Bros. Digital, Warner Bros. Consumer Products U.S., Warner Bros. Animation U.S. and Warner Bros. Consumer Products U.S., will also be sold off. The Studio will receive $350 million from the sale, which does not include The Weinstein Company’s purchase of The Family Circus.
The studio also announced it would shut down production of both Batman: The Animated Series and Scooby Doo, The Mystery Inc. Movie, and will lay off its entire staff as the result of the restructuring of the Animation production division.
“This sale not only recognizes our creative excellence but will allow us to position Warner Animation Group to accelerate our growth by investing in the studio’s most strategic properties,” said Kevin Reilly, chairman, chairman and chief executive officer, Warner Animation Group. “We are confident in the future of our animation studio as we continue to deliver high-quality, unique animated programming to our kids and families.”
“We have created a studio that will thrive in today’s highly competitive animation marketplace and we’re excited about the opportunities this new ownership will bring to Warner Animation Group and the Warner Bros. family of brands,” says Dana Walden, president, Warner Bros. Animation Group. “This
