Disney, Tencent forge animation partnership

Walt Disney (DIS.NYSE) has formed alliance with Tencent Holdings (0700.HKG), China’s largest internet service provider, and the state-run China Animation Group to collaborate on developing animated content for China and international markets, Bloomberg reported. The partnership, called the National Animation Creative Research and Development Cooperation, will work as an incubator to train local animators and develop original content, Walt Disney International Chairman Andy Bird said in a joint statement. No timeline has been set for production. Tencent stands to strengthen its existing businesses, including online gaming, through the partnership with the world’s largest entertainment conglomerate, said Bill Huang, a Shanghai-based analyst at DBS Vickers Securities. “But I can hardly see any meaningful near-term earnings contribution,” he added. China is aiming to boost cultural industries during the 12th Five-Year Plan period (2011-2015) by measures including tax cuts for animation and digital TV companies.