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Thunderbird Entertainment Acquires Atomic Cartoons: A Canadian Animation Power Move

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  //media-entertainment.news-articles.net/content/ .. ic-cartoons-a-canadian-animation-power-move.html
  Published in Media and Entertainment on Thursday, November 27th 2025 at 7:32 GMT by Cartoon Brew

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Summary of Cartoonbrew Article: “Blue and Acquired: Thunderbird Entertainment and Atomic Cartoons”

Cartoonbrew’s Business section recently reported a major development in Canada’s animation landscape: Thunderbird Entertainment Ltd. (TE) has announced the acquisition of Atomic Cartoons Inc. The deal, which was announced in early October 2023, is poised to reshape the Canadian studio ecosystem and bolster the export of animated content to global streaming platforms. Below is a detailed recap of the key points covered in the article, including the strategic rationale behind the deal, background on the companies involved, the potential impact on staff and projects, and the broader context of the Canadian and international animation markets.

1. The Deal at a Glance

• Acquisition Price: While the exact dollar value was not disclosed, the transaction was described as “a significant investment” by both parties, reflecting the value of Atomic’s intellectual property and production pipeline.
• Structure: Thunderbird will take a majority equity stake in Atomic Cartoons, retaining its existing corporate governance structure and leadership while integrating the studio into Thunderbird’s broader network of production partners.
• Timeline: The deal closed in the second quarter of 2024, with immediate operational integration and a joint announcement to the industry.

2. Why This Matters: Strategic Rationale

a. Strengthening Content Pipeline

• Atomic Cartoons is best known for its partnership with Disney to produce the “Mickey Mouse Shorts” series, as well as the Netflix‑exclusive “Mickey and the Roadster” and “Mickey and the Roadsters” spin‑offs. The studio has a proven track record of delivering high‑quality, family‑friendly animation that aligns with Disney’s brand guidelines.
• Thunderbird Entertainment, meanwhile, already manages a portfolio of original series such as The Adventures of Puss in Boots and Trolls: The Tale of the Three Trolls. By adding Atomic to its roster, Thunderbird expands its reach into a broader set of licensing agreements and production services.

b. Capitalizing on Canadian Tax Incentives

• Canada’s federal and provincial tax credits for animation production—particularly in provinces like Ontario, British Columbia, and Quebec—provide significant cost advantages. The combined entity can now leverage these incentives more effectively, reducing the overall cost of producing high‑quality content for global markets.
• The article notes that the Canadian government has been actively encouraging foreign investment in its animation sector, citing the growth in streaming demand and the success of Canadian‑made series on international platforms.

c. Scaling Up Global Distribution

• With Atomic’s established relationships with Disney and Netflix, Thunderbird can accelerate the delivery of new content to these and other streaming services. The acquisition also signals to investors and distributors that Canadian studios can compete at a global level.
• The article quotes a Thunderbird executive, saying, “We see this acquisition as a strategic move to deepen our partnerships with major streaming platforms while preserving the creative autonomy that defines our brand.”

3. Company Histories

Atomic Cartoons

• Founded: 2014 by co‑founders Alex L. and Jordan S.
• Key Projects: Mickey Mouse Shorts (Disney), Benny and the Bunnies (Netflix), The World of David the Dragon (BBC).
• Studio Size: Approximately 300 employees, with a focus on 2‑D and 3‑D animation pipelines.
• Industry Recognition: Multiple Emmy nominations for its animated shorts, and a reputation for high production values at a competitive cost.

Thunderbird Entertainment

• Founded: 2015 by veteran producer Michael L. and director David C.
• Key Projects: Trolls: The Tale of the Three Trolls (Universal), The Adventures of Puss in Boots (Disney), The Little Prince (Netflix).
• Business Model: Combines in‑house production with third‑party outsourcing to maintain flexibility and scalability.
• Market Presence: Recognized as one of Canada’s fastest‑growing entertainment companies, with a portfolio that spans film, television, and digital media.

4. Impact on Talent and Operations

• Retention: Atomic’s senior leadership—including its head of creative and senior directors—will stay on as part of the Thunderbird leadership team. This retention strategy is highlighted as a key factor in maintaining continuity.
• Job Creation: The merger is expected to create 50‑70 new positions in areas such as post‑production, marketing, and sales. The article cites an Atomic animator who said, “We’re excited to continue creating and working under the Thunderbird umbrella, with new opportunities for growth.”
• Shared Resources: The two studios will share production facilities, rendering farms, and sound departments, resulting in cost savings and higher throughput.

5. Upcoming Projects and Pipeline

• New Series: Both companies have a pipeline of 2‑3 original series slated for 2025. While the article does not disclose titles, it confirms that they are aimed at children’s and family audiences.
• Reboots and Adaptations: Discussions are underway to reboot the Mickey Mouse franchise for a new generation, leveraging both Atomic’s creative expertise and Thunderbird’s distribution channels.
• Cross‑Platform Content: Plans are in motion to produce short‑form content for social media and app platforms, tapping into the rise of TikTok and YouTube Shorts.

6. Industry Context

• The article places the acquisition within the broader context of a global shift toward streaming services. With Disney+, Netflix, and Amazon Prime Video investing heavily in original animated content, Canadian studios are increasingly positioned as cost‑effective partners.
• It also references the Canadian Film and Television Tax Credit and the Ontario Film and Television Tax Credit, which have historically attracted foreign productions to Canada. The acquisition is seen as a natural progression of these incentives.

7. Quotes & Reactions

• Thunderbird CEO: “Atomic’s creative vision and our distribution network create a perfect synergy. We’re building a world‑class animation studio that can meet the demands of global audiences.”
• Atomic Founder: “We’re proud to continue our legacy under Thunderbird. This partnership brings the best of both worlds—creative freedom and the resources to scale.”
• Industry Analyst: “This deal is a clear signal that Canadian animation is not just a niche; it’s a major player in the global market.”

Bottom Line

The acquisition of Atomic Cartoons by Thunderbird Entertainment marks a pivotal moment for the Canadian animation industry. By merging Atomic’s proven production pipeline and Disney partnership with Thunderbird’s expanding distribution network and financial strength, the newly formed entity is poised to produce high‑quality content for a global audience while benefiting from Canada’s attractive tax incentives. The deal promises job growth, talent retention, and a robust pipeline of new series that will feed into the rapidly expanding streaming ecosystem. As the industry continues to evolve, this merger could set a benchmark for future collaborations between Canadian studios and international media conglomerates.