You probably already know: TeamTO, a well-known French animation studio, is going through a difficult time. The company has been in receivership since the beginning of October.
Here is an update on the situation, and the next steps.
Big ambitions
Despite great productions in recent years (Jade Armor, City of Ghosts, PJ Masks, Elena of Avalor…), TeamTO faced several challenges which undermined its economic model.
Indeed, in 2018, TeamTO began the shift towards more eco-production. The studio has chosen to set up new premises in Paris (in addition to that of Bourg-lès-Valence) to enable it to massively reduce its carbon impact. TeamTO also had presented to the RADI-RAF this strong commitment from the studio. Ecological commitment which also resulted in the involvement of the TeamTO team in the creation of Carbulator, a carbon calculator dedicated to the entertainment sector. We can only welcome these initiatives, signs of a real approach by the studio towards ecology.
At the same time, the new premises were also intended to support the growth of the company, with the ambition of increasing to around a dozen projects per year.
Covid, streaming: an economic storm
But while TeamTO embarked on this path, which culminated in entering the new premises at the end of 2022, the world was turning upside down. The pandemic has hit the world. The streaming sector has undergone major developments: after massive spending, platforms have limited their investments in order to increase profitability.
As explained Varietywho was able to speak with the studio, instead of the dozen projects planned, TeamTO now only works on 3 projects per year on average in its Parisian premises. And only around 50 people work in premises designed to accommodate up to 300.
Guillaume Hellouin, manager of TeamTO, explains to Variety that this volume of projects remains viable, but only if the team gives up its premises and moves to a smaller, therefore less expensive, location.
Towards a takeover?
Following the recovery procedure, several companies showed interest in taking over all or part of TeamTO, with very varied offers, and not necessarily likely to preserve jobs.
At this stage, the TeamTO management team is leaning towards the offer from Riva Studios, based in Italy: the Paris commercial court will have to validate this takeover on November 20.
In short, Riva Studios’ offer would allow TeamTO to continue its activities and fulfill its contracts. On the other hand, a reduction in teams will have to take place to achieve financial balance: a reduction of 20 to 30% of the current workforce would be planned.
In addition, TeamTO would split into three, with a separation of production activities, the animation studio (production itself) and finally an R&D branch which would be responsible for developing and offering the tools used by TeamTO.
This offer has two advantages. First of all, despite the workforce reductions, it limits the damage on the employment side. In addition, Riva Studios and TeamTO know each other well, and were already working together: discussions have even been in place for several months for a possible investment by Riva within TeamTO. Recent events have accelerated things.
Next steps
At this stage, the TeamTO team explains to Variety that they are satisfied with Riva Studio’s offer. We therefore have to wait for the judicial decision of November 20 which will validate this buyout. We will keep you informed when the time comes.
Until then, here is the latest demo tape from the studio, which highlights many projects from the TeamTO teams.
