This article is also available in:
Français
You may already know that TeamTO, a well-known French animation studio, is facing a challenging period. The company has been placed under receivership since the beginning of October. Here is an update on the situation and the upcoming steps.
Big Ambitions
Despite producing some successful shows in recent years (such as L’Armure de Jade, La Cité des Fantômes, PJ Masks, Elena of Avalor), TeamTO has encountered several challenges.
In 2018, TeamTO began a shift towards greater eco-production. The studio decided to establish new offices in Paris (in addition to its Bourg-lès-Valence studio) to significantly reduce its carbon footprint. TeamTO presented this strong commitment at the RADI-RAF event (see this conference, in French, for more information). This ecological commitment was also evident in TeamTO’s involvement in creating Carbulator, a carbon footprint calculator dedicated to the animation industry. These initiatives reflect the studio’s genuine move toward environmental sustainability.
Additionally, the new offices aimed to support the company’s growth, with a goal of reaching around twelve projects per year.
COVID, Streaming: An Economic Storm
However, as TeamTO moved forward on this path (the new offices opened in late 2022), the world was changing. The pandemic struck, and the streaming sector went through major shifts: after a period of massive spending, platforms scaled back investments to focus on profitability.
According to Variety, which spoke with the studio, instead of working on a dozen projects, TeamTO now handles only about three projects annually in its Paris offices. Approximately 50 people work in a space designed to accommodate up to 300. TeamTO’s CEO, Guillaume Hellouin, explained to Variety that this number of projects is viable, but only if the team relocates to a smaller, more affordable space.
Towards a Buyout?
Following the judicial administration procedure, several companies have shown interest in acquiring some or all of TeamTO, with offers that vary widely and are not necessarily aimed at preserving jobs. At this stage, TeamTO’s management leans towards an offer from Riva Studios, based in Italy. The Paris commercial court will need to approve this acquisition on November 20.
In summary, Riva Studios’ offer would allow TeamTO to continue its activities and fulfill its contracts. However, a workforce reduction will be necessary: a 20-30% reduction in the current staff is expected. Additionally, TeamTO would be split into three entities: production activities, the animation studio, and an R&D branch responsible for developing and offering tools used by TeamTO.
This offer has two advantages. First, despite the staff cuts, it minimizes job losses. Moreover, Riva Studios and TeamTO are well acquainted, having already worked together. Discussions for a potential Riva investment in TeamTO have been ongoing for several months, with recent events accelerating the process.
What’s next?
At this point, TeamTO’s management told Variety they are satisfied with Riva Studios’ offer. The next step is to await the court decision on November 20, which will have to validate the acquisition. We will keep you updated as soon as there’s more information.
In the meantime, here is the studio’s latest demoreel, showcasing many of TeamTO’s projects.
