Netflix is reportedly in talks to acquire Animal Logic, the animation studio behind Happy Feet and The Lego Movie. The Sydney-based animation studio Animal Logic is known for movies like The Lego Movie, Legend of the Guardians: The Owls of Ga'Hoole, Walking with Dinosaurs 3D, Peter Rabbit, and the academy award-winning Happy Feet. The announcement was made along with Netflix's Q2 earnings for 2022.

The move comes as a result of Netflix’s plan to expand into the animation market. Animal Logic is already working along with Netflix for their upcoming animated film titled The Magician’s Elephant. The film is based on Kate DiCamillo’s children’s book of the same name. The film revolves around an orphaned boy who must find a magician with an elephant in order to get back his lost sister. The film is set for a 2023 release.

The studios are also working together on Ron Howard’s first animated feature The Shrinking of Treehorn, set to release on 10 November 2023. The film is an adaptation of Florence Parry Heide's children's book of the same name.