Netflix Inc is planning to acquire Animal Logic - a Sydney based animation studio, the company said in a statement. The streaming platform further added that it hopes to enhance its efforts to build end-to-end animation production capabilities with this acquisition.

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"Netflix has been investing in animation over the past few years and this furthers our commitment to building a world-class animation studio," Amy Reinhard, Netflix vice president of studio operations, said in a statement.

In a surprise move, Netflix announced this acquisition just before releasing its Q2 report. Not disclosing the terms of the agreement, the streaming platform added that it expects to close this deal by the end of this year.

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However, the company did add that under the agreement, Animal Logic animators along with it will form a global production studio to work on many of the prominent upcoming movies and series. Netflix further clarified that it will continue its partnership with other studios.

Animal Logic is headed by founder CEO Zareh Nalbandian and has a second studio in Vancouver in Canada. The Australia-based animation studio that has worked on hits from "Happy Feet" to "The Lego Movies,"

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Netflix and Animal Logic already are working on upcoming films "The Shrinking of the Treehorns," directed by Ron Howard, and "The Magician's Elephant."

Netflix had earlier released its Q2 report which highlighted that it shed almost 1 million subscribers during the spring amid tougher competition and soaring inflation worldwide. However, it came as a relief as it was much below expected figures.

(With inputs from Reuters)

(Edited by : Sangam Singh)