TeamTO’s acquisition: What it means for the future of animation

French indie animation giant TeamTO, best known for creating award-winning series like City of Ghosts and beloved kids’ shows such as PJ Masks and Elena of Avalor, recently announced its acceptance of an acquisition bid from Milan-based Riva Studios. This decision arrives amid TeamTO’s financial turmoil, having declared insolvency this past September. While the acquisition is subject to the Tribunal Commerce de Paris’s approval, a scheduled hearing has been postponed until November 20.

The journey to Riva’s buyout offer

TeamTO President Guillaume Hellouin revealed that discussions with Riva regarding potential investment began five months ago. However, it was only in the last few weeks that talks gained momentum, transforming into a firm acquisition offer. Despite receiving proposals from three other companies, Hellouin found Riva’s bid to be the most promising and ultimately the only viable choice.

“We needed a partner who truly understood our vision and challenges,” said Hellouin. “Riva’s offer made sense for ensuring the continuity of our operations and the delivery of current projects to our clients and partners.”

Technical excellence and collaborative history

Riva and TeamTO have successfully collaborated on the adult animated series Junichiro Jackson over the past year, establishing a solid working relationship that outsiders may not have anticipated. According to Hellouin, this past collaboration made the transition smoother and increased confidence in Riva’s ability to support TeamTO’s future endeavors.

Transitioning into a new era

The most significant change accompanying the acquisition will be TeamTO’s move from its modern, eco-friendly Paris studio, which opened in late 2022. Ironically, this state-of-the-art facility—designed to reduce the company’s carbon footprint by 63%—became a financial burden. Initially, the studio was set up to handle seven to eight productions per year, with hopes of increasing this number to twelve. But due to the pandemic and a decline in international streaming commissions, TeamTO managed to complete merely three shows annually.

Restructuring and downsizing

Hellouin acknowledges that financial stability will require relocating to a smaller, more sustainable facility, given the studio’s current workforce of 50 people—originally designed for 300.

“We need to find a new balance,” he explained. “Maintaining an oversized facility with a reduced production schedule isn’t viable.”

This restructuring will unfortunately lead to job cuts, with an estimated 20-30% of temporary and permanent staff being let go. Nonetheless, TeamTO is committed to fulfilling all fixed-term contracts as per French law.

Post-acquisition landscape

One noteworthy change post-acquisition is the strategic division of TeamTO into three distinct entities: the production company, the animation studio, and a new R&D technology branch aimed at licensing out proprietary tools. This structural overhaul aims to maintain operational efficiency while fostering innovation.

“By splitting into specialized units, we can focus better on our strengths and ensure long-term viability,” stated Hellouin.

Ensuring long-term viability and industry impact

Corinne Kouper, TeamTO’s Senior Vice President of Production & Development, emphasized that the acquisition aims to secure the company’s future, retain its creative talent, and sustain long-standing partnerships.

“The goal is to let our teams rebound on solid footing, backed by a shareholder base with the resources to support us,” she said.

TeamTO’s Chief Technology Officer, Jean-Baptiste Spieser, echoed this sentiment, expressing enthusiasm for further advancements in R&D. “Collaborating with Marco Balsamo and his team at Riva gives us the opportunity to elevate our technological breakthroughs,” Spieser noted. “Together, we can deliver cutting-edge solutions that empower animation artists worldwide.”

The road ahead

While exact details of the acquisition remain to be finalized and regulatory hurdles await, the overarching strategy is set: streamline operations, reduce overhead, and maintain a steady production pipeline. Hellouin remains optimistic that this reorganization will place TeamTO on sturdy ground, allowing it to continue innovating and producing high-quality content.

For animation enthusiasts, creators, and industry insiders, this development signifies a critical juncture. It’s a testament to TeamTO’s resilience and adaptability and a hopeful indication that innovation and creativity can flourish even in challenging times.

Stay tuned for further updates on TeamTO’s journey and the broader impacts on the animation industry. Share your thoughts on this development and follow our updates to stay informed on this evolving story.