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Head of Fox animation division signs with rival Universal Studios

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Times Staff Writers

Twentieth Century Fox is losing the head of its animation unit to rival Universal Studios, but said it remained committed to the division that was responsible for such lucrative films as the “Ice Age” series.

Chris Meledandri, who joined Fox in 1993, has signed a five-year production deal with Universal to make live-action and animated films. The studio-financed deal is the first step in creating a separately funded production company to make family films.

“Family entertainment was a major part of our studio’s tradition,” said David Linde, co-chairman of Universal. “Revitalizing it is a crucial component of our strategy for the future.”

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Although Fox tried to keep Meledandri, Universal’s offer, which gives him a stake in the new company, proved too tempting.

Meledandri helped make Fox a contender in computer-animated movies. He oversaw Fox’s 1997 acquisition of Blue Sky Studios, the company behind such hits as “Ice Age” and “Robots.”

Meledandri’s replacement has not been announced. But Chris Wedge, Blue Sky’s co-founder and the creative force behind the films, will stay at Fox. In addition, Fox Animation will continue to produce movies outside of Blue Sky, such as this summer’s “The Simpsons Movie.”

“We wish him all the best,” said Tom Rothman, co-chairman of Fox Filmed Entertainment. “Fortunately for Fox, Blue Sky has the best animation talent in the business and its activities are continuing full throttle and unaffected.”

Animation, especially computer generated, has become one of Hollywood’s most competitive genres. Studios will release 13 animated films this year alone, fueling concerns among some analysts about audience fatigue.

Universal wants a label that will produce and release a consistent slate of family and computer-animated films to replace the void left by DreamWorks Animation’s departure to Paramount Pictures.

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Universal was seeking an experienced, well-regarded executive such as Meledandri to navigate the tricky waters of an already crowded family and animation arena. Even Fox struggled for years to establish a successful animation division and ended up closing its Phoenix-based animation studio in 2000 after a string of flops.

It took five years for Meledandri and Blue Sky to release a hit in “Ice Age.” Meledandri will be departing just as the division appears to be on a roll. The sequel, “Ice Age: The Meltdown,” was one of the biggest hits of 2006, grossing $646 million at the worldwide box office.

Meledandri will continue to serve as producer of “Horton Hears a Who,” based on the Dr. Seuss series, which is scheduled for release in 2008. Meledandri’s other pet project, Rob Reger’s “Emily the Strange,” is moving forward at Fox.

Universal has had success with its direct-to-video titles such as the “Land Before Time” franchise, which has generated more than $1 billion. Last year, the studio found modest success with the traditionally animated “Curious George.”

Universal will release its first computer-animated movie, “The Tale of Despereaux,” based on Kate DiCamillo’s bestselling children’s book, at Christmas in 2008. The film, co-written and produced by “Seabiscuit” director Gary Ross, is in mid-production at London-based effects company Framestore CFC.

Meledandri “is one of the few people who has built a ground-up animation division,” Ross said. “He will be a huge asset to Universal.”

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lorenza.munoz@latimes.com

richard.verrier@latimes.com

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