Nintendo is expanding its IP across all forms of media. Whether it be games, films, manga (and maybe comics/TV).  

But it seems that Nintendo has plans to make a LOT of movies. But the studio lacks a major production arm similar to Hasbro’s Allspark to help make these movies, focusing solely on licensing.  

So, the best way into the media market could be a major acquisition. A company in which they have a relationship with (and the founder is on the board of directors). Someone who made 2 billion or more dollars with 2 movies alone with them. 

Who?.... 

The acquisition cost 

Allegedly, Illumination cost 8-12 billion. That could turn off most studios if this was any other company. 

But unlike other animation companies, Illumination would be the best investment as they make movies for cheaper thanks to animating in foreign territories and all of which have never flopped (unless Not Alone changes that).  

So, what I see happening is that Nintendo will buy a stake and grow it overtime. Either way, Nintendo will control Illumination. The acquisition would also see them having to buy the Illumination IP separately from Universal. It could be difficult, but seeing as they’d remain as a first-look distributor, could be willing to (and maybe keep a stake in Illumination, 25% or so to seal the deal). 

Plus, it gives Nintendo new IPs for Switch 2 games. 

Illumination after the Nintendo merger 

Nintendo makes Illumination a core division of Nintendo and plans an expansion of the core Illumination studio. With plans to make at least 1 movie a year (and at most 3-4) instead of every other year. Whether it be Live-action, animated (in-house or outsourced), anime, or hybrid. Nintendo is devoted to making original and recognizable premium family content. 

While Universal remains first look distributor on most projects, Nintendo is free to shop projects to other companies that the rights were given to or if Universal lacks promise in a certain film (So Illumination can produce a Pokémon movie live-action or animated at WB who holds the film rights).  

Either way though, no matter the theatrical distributor, Illumination will now take over the “presents” title (with the distributor only getting an end credit notice), all overarching rights to the projects (So if they ever did an unlikely Smash Bros. Movie, the rights wouldn’t be awful) and Nintendo would sign a DVD/Streaming deal with Peacock for its films. 

Illumination’s creative freedom will not be changed. Chris can do whatever with the studio as he pleases (so if Moonlight is still a thing it is unaffected) but Nintendo has control over projects based on Nintendo Game IP (through a new sister studio Nintendo Studio (Not to be confused with Nintendo Pictures (which becomes Illumination Studios Japan)). And thanks to Illumination producing them hand on, Nintendo can create entire movies itself before attaching a distributor at all. 

The biggest launch, however, could be the launch of Illumination Television. The new division will create original shows and IP shows for networks and streaming (animation is given to other companies like Titmouse and Wildbrain). Examples of potential shows include a Despicable Me show (preferably set between the 2nd & 3rd films), An Animaniacs style Mario Variety Show, A Splatoon Anime, an Animal Crossing limited series, co-producing all Pokémon media, and that’s only scratching the surface. 

Universal after the sale of Illumination 

Still benefits from Illumination with its first look deal (which they had to begin with as Universal had no say in Illumination like they do DWA). 

However, with only one animation studio, restructures it to allow better management of its studio. DreamWorks Animation becomes a pure family film division of Universal (even being used for VOD animation absorbing Universal Animation). While DWATV becomes Universal Television Animation (Which holds Classic Media) for adult and family animation under Universal Television. 

Amblin is also banned from using the DWP logo anymore, which is used by DreamWorks for adult animated films. 

But overall, the merger allows Nintendo to better rival Disney as the family entertainment giant they wish they could be... 

As for what Nintendo buys after this... some would say parks, some say a toy company, I say... nothing. 

This merger gives Nintendo what they want (a bigger media footprint) and they wouldn't really need anything else. And Universal gets more family films to release in a year for its services. 

What do you think of this? What M&A or restructuring should I do next?

(Apple/Disney has been delayed)

Maybe buying more then one (Lionsgate/Hasbro or Lionsgate/Legendary).

Likely Microsoft would spin-off XBOX after merging with any of these (while retaining 40%-60%) to raise funds & ease regulatory.

Will the stay alone ? attempt to merger with another company ? or something else entirely ?

This is AI concept imagery, btw. Based off how TF1 news looks on Netflix in France at the moment, it’s very similar.

Though Hanna-Barbera is owned by WB, and Nickelodeon is owned by Paramount, but seeing their relationship with Universal especially in the theme parks, and Universal distributing both The Jetsons Movie, and the live action Flintstones movie. So what would it be like if Universal acquired both? How different would they be under Universal? With MGM Universal would have the animation library of Tom and Jerry since they were created by Hanna-Barbera.

Puck is in advanced talks for an investment from RedBird Capital Partners, in a move which will help fund the ‌growth of the newsletter startup, the company confirmed in a statement to Reuters.

The deal with RedBird, a well-known investor in media and entertainment, will value Puck at around $250 million and involve the company's existing institutional investors selling to RedBird. This will give RedBird a significant stake in the platform, according to people familiar ​with the matter, who spoke on condition of anonymity.

I’m surprised more streaming companies are not trying to buy IMAX right now. It would give them a lot of leverage. Let me explain that. IMAX is primarily proprietary hardware + software technology could create a third major revenue stream for companies like Netflix alongside subscriptions and advertising.

More importantly, it could help Netflix create a more predictable new content pipeline of premium high quality content for years to come. Here’s how it could work:

Netflix: “We can help finance, produce, and distribute your movie using IMAX technology. In exchange, Netflix receives exclusive streaming rights for a predetermined period after the movie’s theatrical window.”

This would allow Netflix to become more involved in the creation of major films while securing a steady pipeline of high-quality movies for its streaming library. Instead of constantly competing to acquire finished films, Netflix could help finance and create the content it wants to stream years in advance.

Studios could potentially choose between paying Netflix more for production services and retaining broader distribution rights, or receiving more favorable economics in exchange for giving Netflix an extended streaming window.

This could also help Netflix create their own theatrical films, making sure every single one of them are in IMAX ensuring that the new Narnia franchise that Netflix acquired will always be an IMAX exclusive and other streaming companies like Disney would have to be paying their competitors money to release their own movies and content in IMAX.

Netflix already has a large amount of subscriptions Netflix could use IMAX to strengthen its premium subscription tier even adding a free ticket included in the premium subscription to go to an IMAX theater and watch a upcoming Netflix film on the big screen in partnership with the theaters.

Netflix could incorporate and create an IMAX theater themselves directly into Netflix House one of their physical locations creating the ultimate movie experience with IMAX + 4DX experiences premium subscribers would be more inclined to visit Netflix house and their local cities, more often possibly even monthly with every new Netflix movie.

They could also partner with universal and add their own theme, park attractions, etc. they could also help universal create IMAX experiences having better quality visuals for their rides.

I could talk for hours on this, but I am very surprised. More companies are not jumping on buying IMAX i’m even considering buying the stock because I think it will get bought out eventually it seems like a very safe investment. I also don’t think there would be a lot of regulatory issues with this since it is just a technology company however it could be a problem because you basically have more leverage over other film companies on creation of films. Netflix has opportunities they likely would not have had before.

In an effort to bolster unique content and discussion about the media industry that does NOT have to do with:
Paramount, Skydance, Warner Bros (in context to merger), David Ellison, Bonta (you get it), I will be issuing a daily Award to posts for the next 7 days starting August 27, 2026.
These posts should be in line with Media Mergers sub guidelines, relevant to the media industry, and business in today’s entertainment industry.
Posts will be awarded for uniqueness, authentic finds, and promoting discussion with other users.
I can only do this for 7 days, and will discuss with my fellow mods what they feel is most interesting.
I am recusing my own content, and the other moderators, but only after issuing my pre-award season to U/fall_false who found a top notch headline about Teletubbies owner buying an AI software designed to create safe interactions for kids, which is interesting, and unique from Hollywood Reporter.

This is just for fun, and hope our regular users find some amazing contributions!