Merger Gets AG Greenlight, ‘Forgotten Island’ BTS, ‘Knights Of Guinevere’ Returns

The state attorneys general who sued to stop the Paramount-Warner Bros. merger have folded to corporate pressure, clearing the way for the deal. Paramount made five years of production and workforce promises, but the merger would still turn two major animation buyers into one. Those promises have an expiration date. The lost competition doesn’t.

We have an exclusive look inside Forgotten Island, with directors Joel Crawford and Januel Mercado breaking down two sequences built around Jo and Raissa’s friendship. And Knights of Guinevere fans finally have dates for the next three episodes, along with a disturbing new trailer.

Elsewhere, a proposed federal tax credit could give productions a financial reason to keep animation work in the U.S.; Brad Bird’s Ray Gunn got its first trailer and a limited 70mm theatrical release; Jeffrey Katzenberg posted advice for artists worried about AI; and Disney is planning another round of layoffs.

Check out these stories and more at cartoonbrew.com.

1. 
   State AGs Who Called Paramount-Warner Bros. Merger Unlawful Now Settle, Clearing The Way For Deal

   Officials have cleared a path for two Hollywood giants to become one, leaving workers facing likely job cuts and creators with one fewer buyer for their work.
2. 
   ‘Forgotten Island’ Directors Break Down Two Sequences That Bring Jo And Raissa’s Friendship To Life (EXCLUSIVE)

   Directors Joel Crawford and Januel Mercado discuss the film’s shifting light, camera effects, and a 40-second shot that follows Raissa through Jo’s memories.
3. 
   ‘Knights Of Guinevere’ Sets Release Dates For Its Next Three Episodes, Unveils Twisted New Trailer

   A new teaser leans into the show’s darker side ahead of its return, more than a year after the pilot debuted. But we won't have to wait that long for more.
4. 
   A New 20% Federal Tax Credit Would Require Most Animation Work To Stay In The U.S. To Qualify

   The bipartisan proposal would cover eligible U.S. labor costs and could be combined with states' local production incentives.
5. 
   Brad Bird’s ‘Ray Gunn’ Gets First Trailer, 70mm Theatrical Release, Expanded Voice Cast

   The long-gestating detective story opens in select theaters December 4, including limited 70mm screenings, before arriving on Netflix December 18.

6. 
   Jeffrey Katzenberg Says Artists Should Fight for AI Terms, Not Against AI

   The former DreamWorks CEO urges artists to negotiate consent, credit and pay as AI spreads, while leaving questions about displaced jobs mostly unanswered.
7. 
   Disney Plans More Layoffs While Spending Billions On Share Buybacks

   Disney’s legal chief warned his department will shrink as separate companywide cuts reportedly approach. The company earned $2.64 billion last quarter.
8. 
   ‘Knights Of Guinevere,’ ‘Iron Boy,’ ‘Tangles,’ ‘Jim Queen’ Headline 2026 Animation Is Film Lineup

   Nine competition features, five shorts presentations, studio previews, retrospectives, and filmmaker talks will run October 16–19 in Hollywood.
9. 
   Canada Debates AI’s Place In Animation At OIAF’s The Animation Conference

   A panel of local industry vets tackled AI’s effect on entry-level jobs, creative control, and the growing problems with large AI models.
10. 
    ‘Talon And The Champions Of Saurithia,’ An Indie 2D Fantasy Where Dinosaurs Are The Heroes

    With a pilot that surpassed 1.7 million YouTube views, creator Heather Parra is expanding the elemental dinosaur fantasy 'Talon and the Champions of Saurithia.'