New York City-based Curious Pictures is looking for acquisitions in several areas, and might consider a single deal for "upwards" of USD 50m, according to financier Richard Dorfman. "Specifically, we are interested in production companies (both live action and animation), distribution companies, intellectual property rights holders and media/entertainment-oriented technology companies, e.g., makers of online games," said Dorfman, who is one of the Curious owners and a member of its board. He is also point man on the Curious dealmaking front through his Richard Alan Inc, New York-based corporate investment vehicle. "We plan to acquire one or more attractive companies in one or more of these segments."

Even more specifically, according to a source familiar with Curious Pictures's thinking, the well-known animation house is looking at New York-based production competitors, New York-based vertically integrated suppliers and Canadian-based distributors. On its Web site, Curious describes itself as a "diversified entertainment company" that creates and produces "television programs, commercials, on-air graphics, and toys for a diverse array of clients worldwide." Its recent animation projects include Cartoon Network's "Codename: Kids Next Door," Disney Channel's "Little Einsteins" and "Barbie Diaries," a CGI-animated special for Mattel. Privately held Curious is looking to "ramp up," said Dorfman. "The company has done well enough to be able to afford to go on a bit of a buying spree." Dorfman declined to specify a specific size for the Curious war chest, beyond noting that Curious was sitting on sufficient cash to execute its game plan and was backed by "institutional money." He did add that Curious is "confident that it could close on deals upwards of USD 50m."

According to a spokesperson for the Association of Independent Commercial Producers, there are approximately 90 member companies out of a total of 270 that maintain offices in the New York metropolitan area. Companies that could fit the Curious acquisition profile that are New York-based animation-commercial production houses include Noodlesoup Productions, whose work includes "The Venture Bros" for the Cartoon Network and animations for the Independent Film Channel, Warner Brothers Online and Miramax; Charlex, an animation house and editing facility whose recent work includes a Visa commercial featuring Marvel Comics super heroes; and Animation Collective, which focuses on creating animated children's programming for television, the Internet and home video, and whose work includes programming for both Nickelodeon and the Cartoon Network. All three are privately held.

Canadian distributors that fit the general profile include two Montreal-based companies, Remstar Distribution and TVA International Distribution. And while Vancouver-based Lionsgate, often called the last true Hollywood independent, is generally regarded as the plum of north-of-the-border production and distribution, with an estimated USD 842.6m in 2005 sales, its presumed takeover cost is far in excess of what Curious proposes to pay. "If we had more resources, I'd say we should buy Lionsgate," RAI's Dorfman joked, declining to discuss any actual individual Curious acquisition candidates.

by Louis Chunovic