Netflix has announced that it has acquired Animal Logic, the Australian animation studio responsible for working on The Lego Movie 2, Captain Marvel, Happy Feet, The Matrix, The Lord of the Rings: The Fellowship Of the Ring, Harry Potter: Goblet of Fire and many more big name titles.

The streaming giant announced the acquisition alongside it’s Q2 2022 earnings report, announcing that it would be using Animal Logic to develop world class animated projects.

“Today, we announced that we will be acquiring leading animation studio Animal Logic, with ~800 amazing people mostly in Sydney and Vancouver, which will help us accelerate the development of our animation production capabilities and reinforces our commitment to build a world-class animation studio,” said Netflix in a shareholder letter.

The new acquisition follows an interesting time for Netflix, as they reported that they lost one million subscribers in it’s last fiscal quarter, made 70 part-time staff redundant from it’s animation studio and dropped several animated projects.

Animal Logic is already working with Netflix to develop two animated projects, with the first being The Magician’s Elephant, and the other being The Shrinking of Treehorn, the first animated film by director and Happy Days star Ron Howard.

The acquisition is not yet finalized, but is expected to do so later this year.