Nelvana is Just 'Paused' According to Corus. But It's Likely the Animation Studio Will Be 'Paused' for Good.
In the wake of viral reports claiming the end of Nelvana after 54 years of iconic animation, Corus Entertainment has rushed to clarify that the beloved Canadian studio isn't fully shuttered—it's just "paused" on new productions while shifting gears to legacy brand management.
The clarification comes via an email to media outlets on September 2, 2025, following employee posts on social media about operations halting on August 29.
But as fans of Star Wars cartoons, Care Bears, and Beetlejuice: The Animated Series process this, the corporate lingo feels suspiciously like a soft landing for what could be a de facto closure.
With Corus drowning in over $1 billion in debt and facing a precarious revenue outlook, is this pivot to "distribution, merchandising, and managing existing properties" a lifeline or just a polite way to say goodbye to active production? As the animation world mourns another casualty of industry woes, Nelvana's future hangs in the balance.
Here's the TLDR...
Corus's Official Clarification: Nelvana isn't shutting down entirely; it's pausing new productions "for the time being" and refocusing on distribution, merchandising, and managing its existing IP library as part of broader cost-cutting at Corus Entertainment.
Employee and Social Media Buzz: Staff reports and X posts from late August suggested a full closure on August 29, 2025, but Corus's response frames it as a strategic wind-down of ongoing projects, echoing July 2024's development halt—many see it as semantic damage control.
Financial Backdrop and Corporate Speak: Corus's Q3 2025 ad revenue plunged 15%, with total revenues down amid $1B+ debt, U.S. strikes' aftermath, and channel losses like HGTV to Rogers; spokesperson Melissa Eckersley emphasized the brand's survival through legacy focus, but analysts call the outlook "very precarious."
The Initial Shock: Reports of Nelvana's Demise
The story exploded on social media over the Labor Day weekend, with social media users and animation forums lighting up about Nelvana's apparent closure. Posts from insiders claimed the Toronto studio, founded in 1971 by Michael Hirsh, Patrick Loubert, and Clive A. Smith, had ceased operations on Friday, August 29, 2025—ending a legacy that turned Canada into a cartoon export powerhouse. One viral thread from @CNschedules highlighted Nelvana as "another casualty of Corus Entertainment's struggle to survive," amassing thousands of likes and shares from fans reminiscing about classics like Franklin and the infamous Star Wars Holiday Special segment.
This wasn't out of nowhere. Back in July 2024, Corus had already paused all new development at Nelvana, leading to the exit of VP Athena Georgaklis, a 20-year veteran behind hits like Total Drama Island and The Hardy Boys live-action series. That move, part of 800 layoffs since 2022, was blamed on the 2023 Hollywood strikes and economic headwinds. Fast-forward to 2025, and whispers of full shutdown grew louder as Corus shuttered kids' channels like Disney Jr. and Disney XD in Canada by September. Employee reactions on X echoed heartbreak, with users like @IMissBionix speculating it might evolve into a mere licensing entity, sans in-house production.
Corus Steps In: The "Pause" Explanation and Verified Quotes
By Tuesday, September 2, Corus fired back with an email to outlets like The Globe and Mail, insisting Nelvana lives on—just in a slimmed-down form. Melissa Eckersley, Corus’s head of corporate communications, told reporters: "The Nelvana brand will still exist, focusing on distribution, merchandising, and managing existing properties." The company added that it's implementing a "previously announced plan to wind down existing projects and pause new productions for the time being," while affirming: "As always, we continue to review opportunities and priorities as part of our ongoing business operations."
This echoes co-CEO John Gossling's earlier words from a 2024 earnings call: "We’re making tough decisions to shutter areas of the business we can no longer sustain and pause longer term development activities while we implement efficiency initiatives." But the vagueness—"for the time being," "review opportunities"—reeks of corporate speak, designed to calm investors without committing to revival. Corus declined to specify job impacts, though the wind-down implies more cuts beyond the "small number of exits" from last year.
Analysts aren't buying the optimism. Bank of Montreal's Tim Casey described Corus’s revenue as "very precarious," citing ad drops and debt maturities looming in 2027-2030 totaling over $1 billion. Q3 2025 revenues fell to $297.8 million CAD, down 10%, with production revenue hit by fewer episode deliveries. Inflation, strikes, and streaming shifts have squeezed budgets, while Corus lost key rights like HGTV to Rogers in 2025. Despite this, execs pocketed $1.8 million in bonuses last year amid a 90% stock plunge to nine cents.
Legacy Management: What Does It Mean for Nelvana's Future?
Focusing on "managing existing properties" sounds noble for a studio with a library of over 4,800 episodes, including Care Bears movies, Babar, The Magic School Bus, and Star Wars' Droids and Ewoks. Nelvana's IP could thrive in merchandising and streaming deals on platforms like Netflix and Disney+, where reruns of Franklin or Bubble Guppies keep drawing viewers. Acquired by Corus for $540 million in 2000, it was meant to fuel kids' TV expansion, but now it's a cost center in a debt-riddled empire.
Yet, to fans and industry pros, this pivot feels like closure by another name. No new shows means no fresh tales from the studio that debuted Boba Fett in animation or co-produced Clone High's satirical edge.
Ongoing projects like Thomas & Friends: All Engines Go! or Piñata Smashlings might wrap via external partners, but in-house creativity? Paused indefinitely.
Unions like Unifor have decried such moves as "heartbreaking," representing thousands in Canadian media. As AI and offshore animation rise, Nelvana's Toronto roots—once a symbol of national pride—may fade into archival management.
This "pause" could be temporary if Corus restructures successfully, but with stock at rock bottom and no clear revival path, skeptics abound. For now, Nelvana endures as a brand, but the magic of its golden era feels paused for good.
People Also Ask
Is Nelvana really closed or just paused?
Corus says it's paused new productions "for the time being," focusing on legacy IP management, but employees and analysts view it as effectively closed amid layoffs and financial woes.
What did Corus say about Nelvana's future?
Spokesperson Melissa Eckersley stated: "The Nelvana brand will still exist, focusing on distribution, merchandising, and managing existing properties," while reviewing "opportunities and priorities."
Why is Corus pausing Nelvana?
Financial pressures including $1B+ debt, 15% ad revenue drop, post-strike effects, and industry shifts like streaming and inflation have forced cost cuts, including 800+ layoffs since 2022.
What happens to Nelvana's ongoing projects?
Existing projects are winding down, with potential completion via partners, but new development is halted; shows like Thomas & Friends may continue externally.
Can fans still watch Nelvana shows?
Yes, the vast library streams on Netflix, Disney+, YouTube, and Corus channels, with focus on distribution ensuring availability.
Hat Tips
The Globe and Mail – Corus halts production at animation studio Nelvana, says it will focus on legacy IP (Sept. 2, 2025)
Animation World Network – Corus Pauses Development at Nelvana; VP Athena Georgaklis Exits (July 17, 2024)
Animation Magazine – Nelvana Studios VP Athena Georgaklis Departs; Development Halted Amid Corus Cost Cuts (July 17, 2024)
Wikipedia – Corus Entertainment
Wikipedia – Nelvana
Pirates & Princesses – RIP Nelvana: Animation Studio Behind Star Wars Cartoons, Beetlejuice, and Care Bears Closes Its Doors (Aug. 31, 2025)
Nelvana Official Site – About Nelvana
Playback – Athena Georgaklis to Depart Nelvana in Corus Layoffs (July 17, 2024)
Hollywood Reporter – Nelvana Studio Head Among Layoff Wave at Corus Entertainment (July 17, 2024)
Kidscreen – Athena Georgaklis is Leaving Nelvana Amid Layoffs (July 17, 2024)
X (Twitter) – Posts by @ToonHive, @CNschedules, @IMissBionix confirming and discussing the shutdown rumors (Aug. 29–Sept. 2, 2025)