Blue Zoo gets $125m Chinese boost

UK-based animation studio Blue Zoo has received £30m (US$37m) of funding from a Chinese investment vehicle established by president Xi Jinping and will gain access to over £70m more as part of the deal.

Blue Zoo projects are set for a major boost

The London-based company – known in kids TV for its work on series including Digby Dragon, Miffy and Tree Fu Tom – has secured the backing of Zhong Ze Culture Investment Group, launched by the Chinese premier three years ago.

The £30m capital injection will see Blue Zoo join with Zhong Ze subsidiary China UK Animation Company (CU Animation) to forge a joint venture called Lanzu that will benefit from a further £72m of funding. Lanzu will in turn become a minority shareholder in Blue Zoo.

The investment will accelerate the delivery of current and future Blue Zoo productions and coproductions and support development of new IP, with Lanzu lining up at least six new projects over the next five years – one of which is an animated feature based on the classic 1980s TV series Monkey.

“Blue Zoo stands out in terms of creativity, company ethos and commercial acumen,” said Gina Fegan, director of culture at CU Animation and Zhong Ze. “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.”

Oli Hyatt

“Lanzu will enable us to jointly hold and develop our IP whilst generating growth in the Eastern and global markets,” said Blue Zoo co-founder Oli Hyatt, also founder former chair of Animation UK. “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.”

“It confirms that the UK animation is a global magnet for investment, creativity, skills and talent,” she said, while the UK government’s international trade minister Mark Garnier added that it “reinforces our position as a global leader in animation production.”