London-based Blue Zoo, which makes Nickelodeon series Digby Dragon will join forces with China U.K. Animation Company (C.U. Animation) to create Lanzu, a new animation company that will unlock £72 million ($92 million) of production.
Lanzu will receive an initial investment of £30 million ($37 million) a Chinese investment vehicle Zhong Ze Culture Investment Group established by president Xi Jinping, and will benefit from an additional £72 million of funding as part of the deal. Lanzu will in turn become a minority shareholder in Blue Zoo, which was co-founded by Oli Hyatt, who as the then former head of Animation UK was instrumental in winning the UK tax break for animation.
“Lanzu will enable us to jointly hold and develop our IP whilst generating growth in the Eastern and global markets,” said Hyatt. “CU Animation has invested in the talented staff we nurture, our growing business and our dreams for the future.” Kate O’Conner, Hyatt’s successor at the industry campaign body, said the deal was “great news for Blue Zoo, and the UK animation sector.”
The investment will accelerate the delivery of current and future Blue Zoo productions and co-productions and support development of new IP, with Lanzu lining up at least six new projects over the next five years.
Zhong Ze Culture Investment was set up in 2014 as part of an outreach initiative by the Chinese authorities. C.U. Animation and Zhong Ze Culture Investment director of culture Gina Fegan said, “Blue Zoo stands out in terms of creativity, company ethos and commercial acumen. We are delighted to partner with them to enable and accelerate IP development and content production, supporting both Lanzu and Blue Zoo’s international growth.”
“It confirms that the UK animation is a global magnet for investment, creativity, skills and talent,” Conner said. UK government’s international trade minister Mark Garnier added, “This is great news for the UK animation industry. The department for international trade will continue to provide support and advice to businesses like Blue Zoo. We want to attract inward investment to help them and others to achieve their growth ambitions and reach new markets.”
