By Gary Symons
TLL Editor in Chief
MGA Entertainment, Inc. (MGA) has unveiled MGA Studios, an independent subsidiary backed with more than a half billion dollars in cash and assets.
MGA also announced it has acquired Pixel Zoo Animation, a leading global digital animation studio, as MGA Studio’s first acquistion.
The company says the big move underscores MGA’s continued commitment to a rapidly evolving digital entertainment landscape. MGA Entertainment founder and CEO Isaac Larian says it’s not really a new strategy, pointing out that more than 35 years ago, when it wasn’t usual in the toy industry to incorporate entertainment, MGA embraced it and changed the company name from Micro Games of America to MGA Entertainment, Inc.
“While continued innovation in the toy category remains a key driver for our business, we understand the world is changing and are fully committed to carrying our winning legacy into this new and evolving digital landscape,” said Larian. “In addition to growing our large catalogue of television, movie and streaming content, through MGA Studios we aim to create smaller and safer mini universes for our children to grow and develop in a seamless digital and physical entertainment ecosystem.”
MGA is among the global toy companies that have embraced the concept of combining their brand IP with the internal production of TV series and films. Competitors Mattel, Hasbro, Spin Master and LEGO are all heavily involved in film and TV production, which has brought in additional revenue, and increased toy sales.
Acquisitions have also been seen as a powerful way to supercharge the launch of entertainment divisions for toycos. One such example was the $4 billion acquisition of Entertainment One (aka eOne) by Hasbro in 2019.
The acquisition of Pixel Zoo is seen as another critical piece in MGA’s evolution from toy company to entertainment conglomerate. During the past several years, Pixel Zoo has pushed the limits of high-quality animation and content for children and families, and has often done so in direct partnerships with MGA. Paul Gillett, founder and CEO of Pixel Zoo, will continue in his role supporting MGA Studios’ growth into a dominant position globally.
“During the past few years, we have been extremely impressed by MGA’s brands, how they partner with their suppliers, as well as their creative and execution capabilities,” said Gillett. “Intellectual Property development has always been an important part of our studio and this opportunity allows our team to show the world what we can do,
“Working with MGA has been one of the most rewarding experiences we have had, so partnering with them is the next natural step for us. I am excited for our studio to be the first foundational building block of MGA Studios.”
MGA Studios will be charged with independently developing and growing a digital presence through acquisitions, partnerships, and in-house development of innovative content and original intellectual property (IP).
MGA Entertainment owns a number of highly successful toy franchises that are easily turned into animated content. Not surprisingly, the company says MGA Studios will leverage MGA Entertainment’s existing and future IP, including L.O.L. Surprise!, Little Tikes, Rainbow High, Bratz, Baby Born, Mermaze Mermaidz, Na! Na! Na! Surprise.
“MGA Entertainment has demonstrated time and again our ability to create multiple blockbuster brands from the ground up,” said MGA Studios President, Jason Larian. “The purpose of MGA Studios will be to facilitate the expansion of these brands beyond the toy aisle and turn them into true transmedia franchises, including entertainment, gaming, and online experiences.
“We are committed to bringing new partners into the fold to help realize our vision and the Pixel Zoo acquisition is the first step of many on this journey.”
MGA Entertainment and Pixel Zoo have collaborated on many notable projects during the last several years including L.O.L. Surprise! The Movie, available on Netflix; L.O.L. Surprise! House of Surprises series, available on YouTube and Netflix; Rainbow High series, available on YouTube and Netflix; Mermaze Mermaidz series, available on YouTube; Let’s Go Cozy Coupe series, available on YouTube and Amazon; and more. Their latest project together, L.O.L. Surprise! Winter Fashion Show movie, premiered on Netflix this past October.