Paramount Animation is an American animation studio, serving as the animation division and label of Paramount Pictures, a subsidiary of Skydance Corporation. It was founded on July 6, 2011, following the critical and commercial success of Paramount's own Rango and the end of its distribution deal with DreamWorks Animation in 2012. Paramount Animation also collaborates with its sister studio Nickelodeon Movies on a number of projects, especially for those based on franchises from Nickelodeon. Its most successful franchise is the SpongeBob SquarePants film series following the original 2004 film (excluding the streaming spin-off films).
Paramount Animation has produced 12 feature films, with its first film being The SpongeBob Movie: Sponge Out of Water, released on February 6, 2015, and its latest being Paw Patrol: The Dino Movie, released on August 14, 2026. Their upcoming slate of films includes an untitled sequel to Teenage Mutant Ninja Turtles: Mutant Mayhem on August 13, 2027, and Freddy the 13th on October 13, 2028.
Films produced by Paramount Animation have grossed a total of $1.332 billion at the worldwide box office. Its highest-grossing film to date is Sponge Out of Water, which grossed $325.1 million. Sponge Out of Water, Under the Boardwalk, Transformers One, The SpongeBob Movie: Search for SquarePants, and Paw Patrol: The Dino Movie rank among the studio's most critically praised films to date.
Background After its theatrical releases of Gulliver's Travels in 1939 and Mr. Bug Goes to Town in 1941, and the closure of Paramount Cartoon Studios (formerly named Famous Studios) in December 1967, Paramount distributed a few animated films from 1973 to 1992 that were produced by outside studios, including Charlotte's Web, Aladdin and His Magic Lamp, Race for Your Life, Charlie Brown, Bon Voyage, Charlie Brown (and Don't Come Back!!), Heidi's Song, Bebe's Kids, and the live-action/animated hybrid Cool World—the latter of which was directed by former Paramount Cartoon Studios animator Ralph Bakshi.
In the fall of 1993, Canadian animation studio Nelvana signed a multi-year deal to produce five animated feature films in collaboration with Paramount Pictures, with Kathleen Kennedy and Frank Marshall producing; the first two began production the following summer, at a cost of over US$20 million each.McRoberts, Kenneth (1995). Beyond Quebec: Taking Stock of Canada, p. 175. McGills-Queens University Press. . Retrieved June 22, 2006.Maddever, Mary (September 11, 1995). "Nelvana boosts feature involvement" . Playback. Retrieved July 2, 2006. Three of the projects were based on books by E. B. White (The Trumpet of the Swan), Clive Barker (The Thief of Always) and Graeme Base (The Sign of the Seahorse); an original production called Mask Vision was also in the works.Tolusso, Susan (March 28, 1994). "Nelvana joins the public procession..." Playback. Retrieved June 30, 2006. However, none of the films were produced in this deal.
Following Paramount's merger with Viacom, the studio started releasing several animated films based on Nickelodeon's TV shows, including the Rugrats film trilogy, The SpongeBob SquarePants Movie, and Jimmy Neutron: Boy Genius; the films produced by Nickelodeon Movies. The studio also released features based on MTV's Beavis and Butt-Head and Comedy Central's South Park.
In 2005, Paramount's new CEO Brad Grey considered building an in-house animation division, because he saw family films as the "sweet spot" of the movie business. The following year, Paramount signed a distribution deal with DreamWorks Animation, starting with Over the Hedge and ending with Rise of the Guardians. During this deal, the studio released Nickelodeon Movies' Barnyard in 2006 and ImageMovers' Beowulf in 2007.
On March 4, 2011, the studio released its first in-house animated film, Nickelodeon Movies' Rango. The film was critically acclaimed and grossed over $245 million at the box office. The success of Rango helped Paramount discover its potential in making successful animated features on its own. In June of that year, the studio acquired the rights to produce an animated film based on Penny Arcade's 2010 webcomic The New Kid.
History Brad Grey era (2011–2017)
In July 2011, in the wake of Rangos success, the high hopes for The Adventures of Tintin, and the departure of DreamWorks Animation upon completion of their distribution contract with Madagascar 3: Europe's Most Wanted and Rise of the Guardians in 2012, Paramount announced the formation of a new animation division. The studio would initially produce one animated film a year with a maximum budget of $100 million. A key portion of the films would be co-produced with Nickelodeon and they would be cross-promoted at Nickelodeon's theme parks and hotels.
In October 2011, Paramount named a former president of Walt Disney Feature Animation, David Stainton, president of Paramount Animation. In February 2012, Stainton resigned for personal reasons, with Paramount Film Group's president, Adam Goodman, stepping in to directly oversee the studio. It was also announced that The SpongeBob Movie: Sponge Out of Water, a standalone sequel to 2004's The SpongeBob SquarePants Movie, would be the studio's first film and would be released in 2014. A short time after, the film was delayed to early 2015.
In August 2012, Variety reported that Paramount Animation was in the process of starting development of several animated films in collaboration with Nickelodeon, Mary Parent, and J. J. Abrams. Besides the SpongeBob sequel, Paramount Animation considered adapting Dora the Explorer, The Legend of Korra, and Monkey Quest into films. The increase in animated film production was due to DreamWorks Animation being in talks with other studios to distribute their post-2012 animated films.
On July 31, 2013, Paramount Animation announced that they were developing a new live-action/animated franchise in the vein of the Transformers series, which was titled Monster Trucks. Jonathan Aibel and Glenn Berger were set to write the film's script, Chris Wedge (director of 2002's Ice Age) was set to direct the film, and Mary Parent was set to produce the film, with an initial release date set for May 29, 2015.
The studio's first film, The SpongeBob Movie: Sponge Out of Water, was released on February 6, 2015, to positive reviews and was a box office success, grossing over $325 million worldwide and becoming the fifth highest grossing animated film of 2015. That same month, Paramount fired Adam Goodman due to the studio's thin film slate and Goodman greenlighting box office bombs at the studio. Paramount announced another SpongeBob film later that year.
In the summer of 2015, Paramount Animation participated in a bidding war against Warner Animation Group and Sony Pictures Animation for the rights to produce The Emoji Movie, based on a script by Tony Leondis and Eric Siegel. Sony won the bidding war in July and released the film in 2017. The studio's head Bob Bacon also left Paramount Animation that summer.
In June 2015, it was revealed that Spain's Ilion Animation Studios (the studio behind 2009's Planet 51) won a bidding war against other animation studios to produce a 3D animated tentpole film for Paramount Animation, which was already in production since 2014. In November 2015, Paramount Animation officially announced the project as Amusement Park, (later renamed Wonder Park) with former Pixar animator Dylan Brown helming. The studio also announced Monster Trucks, The Little Prince, Sherlock Gnomes, and the third SpongeBob film.
The Little Prince, originally released on July 29, 2015 in France, was scheduled to be released on March 18, 2016, in the United States as Paramount Animation's second release, but Paramount canceled the American release due to the French producers not paying an additional, previously agreed $20 million for the North American prints and advertising budget, however they still retained the distribution rights in France. It was later released on Netflix on August 5, 2016, as a Netflix original film.
On May 4, 2016, Paramount Pictures announced that it signed a deal with British animation studio Locksmith Animation to co-develop and co-produce three original animated projects to be theatrically released under the Paramount Animation label (with animation produced by DNEG), but in 2017, Paramount abandoned its deal with Locksmith when Paramount chairman and CEO Brad Grey was replaced by Jim Gianopulos.
The studio's second film Monster Trucks was released on January 13, 2017 to mixed reviews and became a box office failure, grossing $64.5 million on a $125 million budget.
In March 2017, Skydance Media formed a multi-year partnership with Ilion Animation Studios, forming Skydance Animation.
Jim Gianopulos/Mireille Soria era (2017–2021) In April 2017, Paramount ended its deal with Locksmith Animation when Paramount chairman and CEO Brad Grey was replaced by Jim Gianopulos, who decided that their projects did not fit in with Paramount's other upcoming releases. Locksmith formed a multi-year production deal with 20th Century Fox four months later.
In July 2017, Paramount Pictures named former DreamWorks Animation co-president Mireille Soria as the president of the studio. Soria restructured the studio, increasing its number of employees from 10 to over 110, and created a new goal of releasing two tentpole animated films a year with different animation styles and genres. She would also look over the completion of Sherlock Gnomes and Wonder Park, which were in production before her arrival. That same month, Skydance announced its first two animated feature films for Skydance Animation — Split (later retitled Spellbound) and Luck. Both films would be distributed by Paramount Pictures as part of their deal with Skydance. On October 10, 2017, Bill Damaschke was hired to head the division as president of animation and family entertainment.
The studio released its third film, Sherlock Gnomes, on March 23, 2018, and became a critical and financial disappointment, grossing $90.3 million on a $59 million budget.
In April 2018, Paramount Pictures named former Blue Sky Studios and Nickelodeon Movies producer Ramsey Ann Naito as the executive vice president of the studio. She later left the company in order to become the head of animation at Nickelodeon. In the same month, Soria greenlit the studio's first three animated features under her leadership to be released in 2020 and beyond: The SpongeBob Movie: It's a Wonderful Sponge (later renamed Sponge On the Run), Reel FX's Monster on the Hill (later renamed Rumble), and Skydance Animation's Luck.
On January 14, 2019, Mireille Soria announced that the team at Paramount Animation will no longer work with Skydance Animation because of their hiring of former Walt Disney Animation Studios and Pixar CCO John Lasseter as the head of animation. Luck and Spellbound were still going to be released by Paramount Pictures without the Paramount Animation brand until Apple TV+ acquired the distribution rights to both films in December 2020 and made a larger pact with Skydance Animation in February 2021. Apple Original Films and Netflix would replace Paramount for Luck and Spellbound respectively.
The studio's fourth film, Wonder Park was released on March 15, 2019. It received mixed reviews and it became a box office flop, grossing only $119.6 million worldwide on a budget of less than $100 million.
In June 2019, Paramount Animation announced a new slate of animated features, including an animated Spice Girls film, a live-action/animated Mighty Mouse film, an animated film adaptation of The Tiger's Apprentice, a musical film titled Jersey Crabs (later Under the Boardwalk), and the Imagine Entertainment co-production The Shrinking of Treehorn.