AETH Entertainment and Kartoon Studios Partner to Launch TaleSphere Studios
Rhea-AI Summary
Kartoon Studios (NYSE: TOON) and AETH Entertainment announced a joint venture, TaleSphere Studios, to produce live-action youth and family entertainment, dated December 11, 2025. TaleSphere's first feature in development is Real Santa, based on William Hazelgrove’s bestselling novel and executive produced by Hazelgrove and Allan Grafman.
AETH is described as a full-service, cost-effective production studio whose founders have produced over 150 films. The release notes Kartoon’s strategic expansion from animation into live-action and cites a 2024 industry stat that ~33% of U.S. films earning $100M+ were family/children films, up from 20% in 2022.
Positive
- Formation of TaleSphere Studios joint venture between Kartoon and AETH
- First feature Real Santa already in development
- AETH founders have produced over 150 films
- Kartoon expanding into live-action, broadening content portfolio
- 2024: ~33% of U.S. $100M+ box office films were family/children
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus 1 Down
Peers show mixed moves: KUKE up 39%, LVO up 4.93%, while AGAE, ANGH, and BREA are down between 0.65% and 12.32%, pointing to stock‑specific factors for TOON rather than a broad sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Franchise sneak peek | Positive | +4.9% | Preview of new animated franchise and multi‑year rollout strategy. |
| Nov 25 | Strategic partnership | Positive | +13.6% | Partnership with Shriners Children’s for free content and fundraising. |
| Nov 14 | Earnings and financing | Positive | -2.8% | Double‑digit revenue growth and improved operations with new financing. |
| Oct 20 | Equity financing | Neutral | +14.4% | Market‑priced $7.3M raise with warrants to fund growth initiatives. |
| Oct 17 | Board appointment | Positive | +3.9% | Addition of experienced Warner Bros. executive to board. |
Recent TOON news has mostly seen positive price alignment, with four of the last five announcements followed by gains; the lone divergence was on a fundamentally strong earnings update that saw a modest pullback.
Over the last few months, Kartoon Studios has combined operational progress with strategic initiatives. On Nov 14, 2025, it reported $9.9M in Q3 revenue and $29.7M YTD, plus a $7.3M financing and multi‑year production contracts. Subsequent news highlighted new board member Jeffrey Schlesinger, an at‑market $7.3M financing, and a strategic partnership with Shriners Children’s, all met with positive price reactions. The Dec 9, 2025 franchise sneak‑peek also lifted shares, providing a backdrop of generally constructive responses to content and partnership news ahead of this live‑action JV.
Market Pulse Summary
This announcement highlights Kartoon Studios’ move into live‑action youth and family content through the TaleSphere Studios joint venture with AETH Entertainment, whose founders have produced over 150 films. It builds on a recent stream of content‑driven initiatives and partnerships. In evaluating this development, investors may track execution on the first project, “Real Santa,” subsequent slate announcements, and how these complement existing animated franchises, while also considering dilution and resale dynamics disclosed in recent SEC filings.
AI-generated analysis. Not financial advice.
New Live-Action Banner to Produce Family and Youth Entertainment; First Project, “Real Santa”
BEVERLY HILLS, Calif., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON), a global producer and distributor of children’s and family entertainment, and AETH Entertainment, a full service entertainment studio, today jointly announced they have teamed up to launch TaleSphere Studios, a joint venture that will produce live-action youth and family focused entertainment.
“This marks an exciting venture into live action films in keeping with our commitment to positive youth targeted content,” said Andy Heyward, founder and CEO of Kartoon Studios. “We couldn’t have found a better partner in AETH Entertainment. They are a leader in profitably producing great entertainment.”
“Kartoon Studios and AETH Entertainment are perfectly aligned in vision and passion, and together our complementary strengths will bring bold, inspiring live-action features to today’s youth and families,” said Carla Woods, co-founder and president of AETH Entertainment.
TaleSphere Studios is already in development on its first feature: Real Santa, which is based on William Hazelgrove’s bestselling novel of the same name. The film follows a devoted father who goes to extraordinary lengths to keep his daughter’s belief in Santa alive, capturing the heart and humor of the season. The film is being executive produced by Hazelgrove and Allan Grafman, President and CEO of All Media Ventures.
AETH is a full-service production studio specializing in cost-effective quality content. AETH’s founders have produced over 150 films to date, including Christmas with the Campbells, Crushed, Magic Carpet Rides, and Looking Through Water. AETH is represented by Gersh Agency.
Andy Heyward founded DIC Entertainment, the animation studio behind hits like Inspector Gadget, Strawberry Shortcake, Real Ghostbusters, Captain Planet and Sonic the Hedgehog; Heyward went on to establish Kartoon Studios as a major force in children’s entertainment. Now, through TaleSphere Studios, the joint venture with AETH, he is expanding Kartoon Studios’ portfolio into live action.
The family and children film genre has rapidly emerged as one of the most promising categories in entertainment. In 2024, nearly one in three U.S. films that earned more than
About Kartoon Studios
Kartoon Studios (NYSE AMERICAN: TOON) is a global leader in children’s and family entertainment, delivering premium content and high-value intellectual property to millions of viewers worldwide. The Company’s portfolio features globally recognized brands including Stan Lee’s Superhero Kindergarten, Shaq’s Garage, Rainbow Rangers, and Llama Llama. Kartoon Studios holds a controlling interest in Stan Lee Universe and operates Mainframe Studios, one of North America’s largest animation producers, with more than 22,000 minutes of award-winning programming delivered.
Through its Toon Media Networks division including Kartoon Channel!, Ameba, Kartoon Channel Worldwide and Frederator, Kartoon Studios reaches audiences across linear television, AVOD, SVOD, FAST channels, and top streaming platforms. Kartoon Channel! is consistently rated the #1 kids’ streaming app on the Apple App Store. With a global distribution footprint in over 60 territories, and a robust content pipeline, Kartoon Studios is positioned for sustained growth and long-term shareholder value.
For more information, visit www.kartoonstudios.com
About AETH Entertainment
AETH Entertainment is a full-service entertainment studio that specializes in creating exceptional content efficiently and cost-effectively. AETH’s founders have produced over 150 films and series for networks, streamers and theatrical release to date. Committed to excellence, AETH crafts stories to captivate and entertain while fueling a sustainable entertainment industry. For more information, please visit www.AETHEntertainment.com.
MEDIA CONTACT:
pr@kartoonstudios.com
INVESTOR RELATIONS CONTACT:
ir@kartoonstudios.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/029246a0-0983-4a25-8c0d-b97f4bcf48d9
FAQ
What did Kartoon Studios (TOON) announce on December 11, 2025?
What is the first TaleSphere Studios project and its source material?
How does the TaleSphere JV change Kartoon Studios’ business strategy (TOON)?
What production experience does AETH bring to the TaleSphere partnership?
When was TaleSphere Studios announced and which ticker is associated with Kartoon?
