PORTLAND, Ore.—Nike co-founder Philip Knight has upped his minority stake in dimensional animation house Vinton Studios to majority ownership. Financial terms of the deal were not disclosed. Suffice it to say that Knight’s investment is significant, helping to accelerate Vinton’s expansion plans in commercial production and film entertainment, according to Jeff Farnath, president/CEO of the Portland-based studio.
In return for Knight’s investment, Vinton Studios issued new additional shares in the company to him. He did not buy the shares held by previous majority owner, director/producer Will Vinton. Knight and Vinton are the main shareholders in Vinton Studios.
Farnath noted that Knight made his investment as an individual, separate from Nike. The transaction does not create a direct conduit to Nike business for Vinton Studios, said Farnath. Knight, who was unavailable for comment at press time, bought his original minority stake in Vinton Studios in 1998. Nike, of course, is known for its high-profile commercials, and its prowess in global branding and marketing. Via Wieden+Kennedy, Portland, Nike has also begun to branch out into entertainment content.
While the deal does not directly link Vinton Studios with Nike, it does bring Knight’s branding and marketing expertise into the animation house fold. As controlling shareholder, Knight will sit on the Vinton board of directors. Farnath noted that Knight does not serve on the company boards of any other of his investments outside Nike. "That underscores his strong interest and commitment [to Vinton Studios]," related Farnath.
"Phil’s involvement presents us with an opportunity to brainstorm with him and gain the consistent input of a guy who has vast experience in brand building. He can help us define the best approach to the business, to our forming more interesting and advantageous relationships with ad agencies and clients during a time when traditional business models are not working that well for agencies and production companies."
Farnath added that Knight figures to help Vinton Studios in the convergence of advertising and entertainment, and in the development of content that will advance client brands. Farnath said that Vinton Studios is investing heavily in expanding its CG capabilities. That and the company’s acquisition of 2-D animation house Celluloid Studios earlier this year (SHOOT, 4/26, p. 1), contended Farnath, position Vinton Studios
to be proactive on the content creation front.
Zilpha Yost, president of Vinton Studio’s advertising division, which includes the commercial production operation, described Knight’s involvement as being "exciting in that he brings a client’s perspective and great marketing experience that can help shape us for the future. He can share insights and pull together interesting groups of people for us to connect with in order to figure out what the future holds, including new forms, for the advertising business."
While Knight—who continues as Nike’s chairman/CEO/ president—joins Vinton’s seven-member board, he will not be a member of the studio’s management team or be involved in daily decision making. Will Vinton continues to serve on the board and maintains his dual producer/director role within the studio’s entertainment division.
Vinton Studios’ management team includes Farnath, Yost, Jeffrey Auerbach who’s president of the entertainment division, and Rich Durkin, VP of commercial sales.
Vinton Studios, which also maintains offices in Los Angeles and New York, first established itself in stop motion with its trademarked Claymation endeavors ranging from spots (e.g., the famed "California Raisins") to longform. But during the past five years, the studio has broadened its scope into all forms of dimensional animation. The studio also frequently turns out projects combining computer animation, stop motion and live action. The acquisition of Celluloid—which was relocated from interim Los Angeles quarters to Portland—diversified Vinton meaningfully into cel animation. Celluloid has animated such character icons as Cap’N Crunch, Tony the Tiger, Toucan Sam, the Keebler Elves and Lucky the Leprechaun. The cel animation house also produced the pilot episode of South Park, as well as the earlier Jesus vs. Santa short upon which that Comedy Central series was based.
Vinton Studios credits include such high profile ad work as the "California Raisins" for the California Raisin Advisory Board, the long-running talking M&Ms ad campaign, and the Nissan "Toys" spot (with live action directed by Kinka Usher of House of Usher, Santa Monica). In the TV program arena, the studio executive produced the Emmy Award-winning primetime animated series The PJs in conjunction with Eddie Murphy, Imagine Entertainment and Disney.
Farnath intends to take Vinton Studios into feature animation-moderately budgeted but high quality, family-oriented movies, which are currently being developed for stop motion, CG and cel. The studio plans to announce shortly its first film in conjunction with a major studio, slated to go into pre-production before year’s end. Prior to joining Vinton a couple of years ago, Farnath was at Disney Studios, Burbank, in several capacities, including head of development and senior VP/CFO for Walt Disney Feature Animation.
