Mixed Nutz: The Timeline Where MGM and Warner Bros. Are the Main Rivals of the American Animation Industry

Introduction: The Birth of Two (Technically Three) Stars
The year is 1940.

The field of animation was in the midst of a revolutionary period in America, with the nation's two biggest names in animation at the time having moved up from merely producing short subjects to making fully animated feature films late into the previous decade: Walt Disney Productions with Snow White and the Seven Dwarves in 1937, and Fleischer Studios with Gulliver's Travels two years later. The critical and financial success that these films would garner proved that animation could maintain the audience's investment beyond seven or eight minutes (at least in America - there had been quite a few feature-length animated films produced across a number of other countries before Disney made their mark with Snow White) and seemed to set Disney and Fleischer up to be the biggest rivals in the American animation industry. But this year, though hardly anyone knew or believed it at the time, would see the premiere of two short films that would kickstart the true major rivalry in the field of American animation...

On February 10th, Metro-Golden-Mayer (MGM) would premiere the short Puss Gets the Boot, directed by William Hanna and Joseph Barbera. The cartoon's plot is simple - A cat chasing a mouse while trying to avoid messing up the house (and thus, as hinted in the title, getting the boot), with the mouse taking advantage of the latter detail - yet it makes the most of said plot with its heavy emphasis on slapstick humor. While the management at MGM (who didn't have much interest in the cat-and-mouse chase concept to begin with) were initially content with just leaving this cartoon as a one-shot, the popularity of the cat-and-mouse duo soon convinced them to commission a full series of shorts starring the pair. A naming contest was held among MGM's animation staff to determine the official names of the duo (in the original short, the cat was named Jasper while the mouse was unnamed), with animator John Carr providing the winning suggestion - Tom (the cat) and Jerry (the mouse).

On July 27th, Warner Bros. would premiere the Merrie Melodies short A Wild Hare, directed by Frederick "Tex" Avery. In it, a hunter (Elmer Fudd in his 12th appearance) is repeatedly outwitted by his quarry: a wise-cracking, smart-aleck rabbit with a New York accent. Said rabbit had appeared in prototype form in a few previous shorts (including another that paired him with Elmer Fudd), yet this cartoon would mark the first "true" appearance of the rabbit that, by the time of his next appearance, would be officially known as Bugs Bunny (named after Ben "Bugs" Hardaway, who co-directed the first and third appearances of the rabbit's prototype).

The positive reception of these two shorts was made evident when they were nominated for the Academy Award (also known as the Oscar) for Best Animated Short Subject at the 13th Academy Awards ceremony - while Disney, normally the expected winner of that category, wouldn't have any of their shorts from that same year nominated (though their second animated feature, Pinocchio, would win the Academy Awards for Best Original Song and Best Original Score - not that it alleviated the poor box-office returns that it and its fellow 1940 Disney animated feature Fantasia received). Ultimately, neither short would win (though MGM would still claim that award for The Milky Way, directed by Hugh Harman and Rudolf Ising), but their popularity was enough to propel their respective starring characters to the headliners of their own series, and not long afterwards to the position of mascots for their respective animation divisions.

And the plot thickens from there...
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Hello, and welcome to my first alternate history timeline! This was inspired by the following alternate media history timelines:
King Krazy Tries To Make A Pop Culture Timeline And Fails Horribly by King Krazy
Smarter Than The Average Studio by @More Than A Feeling
As Dreamers Do by @OldNavy1988
TL-2K23 by @Otakuninja2006
Restarted With A Mouse by @redben12
Merrily We Roll Along by @Tacomaster
Man's Best Friend by @THE KINGFISH
Tom and Jerry... and Scooby? by @TheFaultsofAlts

Special credit to @Otakuninja2006 and @TheFaultsofAlts for helping me come up with and refine ideas for my timeline!

As you can probably tell by the title, this timeline will primarily focus on a rivalry formed between the film companies Warner Bros. and MGM, specifically regarding their animated properties. As a fan of the works produced by the animators associated with these two companies (and of those produced by the animators that they helped inspire), I couldn't help but notice how intertwined their animation production history is: both of their primary animated mascots debuted the same year (and their debut shorts were nominated for the same Academy Award), animation industry legends Tex Avery and Chuck Jones have produced works for both animation studios (with the latter having a noticeable antipathy toward the work of Tom and Jerry creators Bill Hanna and Joe Barbera, who'd already moved on to television with their own studio by the time Jones joined MGM IOTL), and MGM even had access to Warner Bros.' pre-1950's film library (including the pre-1948 Looney Tunes/Merrie Melodies shorts) for a few years thanks to a 1981 merger with United Artists (who'd merged with Associated Artists Productions, the company that Jack Warner sold the library to, back in 1958)... which would set into motion events that would lead to Warner Bros. owning MGM's pre-1986 film library and the entire Hanna-Barbera library and studio (long story short, Ted Turner bought MGM in 1986, selling the production unit not long afterward but keeping their film library, including the films they got from the UA merger. Turner would then buy the entirety of Hanna-Barbera in 1991 to help provide the foundation for Cartoon Network, while Time Warner would go on to merge with Turner Broadcasting in 1996). The question that this timeline seeks to answer is: what if those connections sparked into a full-on rivalry between the two studios, as each competed to be the top dog in the American animation industry?

The timeline's title comes from a scrapped pitch for an animated sketch comedy series that would've involved the Looney Tunes and various Hanna-Barbera characters involved in a variety of scenarios and parodies. Tom Ruegger (notable for his work at both Hanna-Barbera and Warner Bros. Animation, particularly the latter) made this pitch to Warner Bros. in 2008, and it was greenlit for about a month before a management shakeup resulted in it getting un-greenlit (Sam Register, the new executive in charge of Warner Bros. Animation, had his own ideas in mind for a Looney Tunes revival).

This first post is mainly supposed to be the setup for the future rivalry to come. The only real point of divergence so far is that the Gulliver's Travels movie by Fleischer Studios is a financial success rather than the box-office bomb it was IOTL (ITTL, they decided to hold back on the use of rotoscoping in order to save on production costs, a decision that ended up paying off). That in itself is meant to be setup - to put Disney in a more vulnerable position compared to OTL so that both Warner Bros. and MGM will have an easier time surpassing them in the field of animation. I still haven't decided yet if Fleischer will continue to go forward with their second feature film Mr. Bug Goes to Town or if they'll decide to scale it down to merely an animated short after witnessing Disney's two box-office flops of 1940.

If you have any suggestions/ideas/criticisms that you'd like to provide, feel free to do so!
 
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I really hope you have Tex directing an animated feature film. If I were to choose any novel for Tex to adapt it would be Brave New World.
 
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With the financial success that Gulliver's Travels was ITTL, I personally think Fleischer should continue making Mr. Bug Goes to Town as a feature film based on the success of GT.
 
1941: The Man of Steel and The Not-So-Happiest Place on Earth
1941 would see the departure of Tex Avery from Warner Bros., on account of a dispute with producer Leon Schlesinger over the ending to the Bugs Bunny short The Heckling Hare. Prior to this, Avery had been a valuable asset to the Warner Bros. animation studio since his initial hiring there in 1935, helping to break the studio out of the slump it'd found itself in during the early 1930s by moving them away from the "Disneyish" style of cartoon making and toward a more wild, sarcastic, absurdist and irreverent style of humor, abound with fast-paced gags, innuendos, and characters braking the fourth wall. Traits like these had since become established staples of both the cartoons made by Warner Bros. and the cartoons directed by Avery himself.

Needless to say, it didn't take long for Avery to find a new source of work. MGM was on the lookout for new animation directors following the departure of Hugh Harman from the company in April (Hanna and Barbera, along with their animation unit, would be focused almost exclusively on creating new Tom and Jerry cartoons by the end of the year), and by September it was announced that they'd worked out a 5-year contract with Avery that would see him establish his own animation unit within the company to produce cartoons in Technicolor. Warner Bros. would also bounce back from Avery's departure, as director Robert "Bob" Clampett (a frequent collaborator with Avery during the latter's tenure at Warner Bros.) would take over Avery's former animation unit.

At the 14th Academy Awards ceremony, Bugs Bunny would once again compete with Tom and Jerry for the Award for Best Animated Short Subject, and once again neither of their shorts (Hiawatha's Rabbit Hunt for the former, The Midnight Snack for the latter) would win - though this time, the winner wouldn't be from either of their home animation studios. No, the winning short this year would be the animated debut of what would become the most iconic superhero in American comics - Superman.

Having been approached by Paramount to adapt the comic book series following the modest success of their second animated feature, Mr. Bug Goes to Town, Max and Dave Fleischer initially tried to scare the executives off by demanding a budget of $100,000 per short, having wanted to scale back a bit after two animated films more-or-less back-to-back (not to mention that the brothers weren't exactly on positive terms with each other around this time). Paramount was able to negotiate the Fleischer brothers down to $50,000 per short - the most expensive budget approved for an animated short thus far. Realizing that this was an offer too good to refuse, the Fleischers agreed to Paramount's request, and the results of the larger budget showed in the art and animation.

Disney (both the studio and Walt himself), meanwhile, was not in a good position. Already faced with the financial failure of the studio's last two films and the success of the studio's rivals, Disney's animators would also go on strike in protest of the studio's disorganized pay structure and favoritism toward head writers and animators, as well as Walt's own control freak nature toward the studio and its projects - the last straw was Walt's refusal to sign a contract with the Screen Cartoonists Guild to unionize the studio. Walt himself was in denial that anything was wrong with the studio's labor structure, and saw the strike as a personal betrayal, especially since Art Babbitt, the studio's highest-paid animator, resigned as president of Disney's company union to join the guild, siding with his fellow animators - Walt's response was to fire Babbitt and 16 other union sympathizers, which would kick off the strike in earnest (reportedly, Walt had to be held back from attacking Babbitt at one point during the strike). Eventually, after taking a goodwill tour to South America while waiting for tensions to cool off (during which the studio's next animated feature, Dumbo, released - it managed to break even and alleviate the financial issues caused by the 1940 flops, but wasn't much more successful beyond that due to both the Fleischers' movie and boycotts from those sympathetic to the striking animators), Walt conceded to the demands of the striking employees under pressure to maintain both public image and funding for Disney as a company - among those demands were the reinstatement of employees fired prior to and during the strike. Though even then, many employees who participated in the strike did not return to the House of Mouse following the strike's conclusion - or, to put it more accurately, Walt and the employees who sided with him made sure to let them know that those employees were no longer welcome at the studio, with Walt laying them off whenever he had the opportunity to (especially after the 90-day arbitration period ended), while others left of their own accord due to tense and embittered working relations. Many of these employees went to work for other animation studios, some would transfer their talents to the realm of comics, and a few would even go on to found their own studio, the United Productions of America (UPA for short). Whatever semblance of camaraderie or togetherness that Walt had tried to foster at his studio, the strike had broken beyond repair... something that the other animation studios would've been quick to capitalize on, were it not for events beyond any of their control.

You see, while all of this was going on, World War II was raging overseas. And following an attack on Pearl Harbor by Imperial Japan on December 7th, the United States of America would officially enter into it...
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Welcome to the second entry in the Mixed Nutz timeline! We've got some more setup here - most notably, one of WB's best is now playing for the other team! For now, though, it'll just be limited to animated shorts, but we might see Avery direct an animated feature film later on in this timeline. That just leaves two questions - 1: What kind of feature film would best suit Tex Avery's directing style, and 2: Will Warner Bros. beat MGM to the punch when it comes to releasing an animated feature film? You'll just have to wait and see...

And yes, I am aware that IOTL, Disney won the award for their 1941 short Lend A Paw. This is another point of divergence meant to make Disney more vulnerable (then again, the strike's already doing a pretty good job at that) - my guess is that following TTL's success of Gulliver's Travels, there's be more (positive) critical attention toward Fleischer Studios' animated output. And this isn't going to be the last time Disney misses out on an Oscar that they won IOTL. Not by a long shot. Speaking of points of divergence, Mr. Bug Goes to Town does better financially here - I figured that, with Gulliver's Travels having been both less expensive to produce and more financially successful ITTL, the Fleischers would be able to have a smoother production cycle for Mr. Bug and feel confident enough to release it earlier rather than holding off until December to avoid direct competition from Disney's movie, and Paramount would be more inclined to advertise the film (part of this rationale was suggested by @MoistLasagna). I'm willing to bet that Paramount might even take advantage of the animators' strike to promote their animated film as an "alternative" to Disney's...

Of course, given both the 1941 Disney strike and the issues IOTL that led to Paramount seizing control of Fleischer Studios (renaming it Famous Studios in the process), I wonder if I should just have Warner Bros. and MGM strike while the iron is hot - as in, within the early-to-mid 1940s, while their biggest competitors in animation are at their most vulnerable (another animation studio is certainly going to). Then again, with the US about to enter into the most important war of the 20th century at this point, I'm not sure that they'd have much of an opportunity to do so...

Next up in 1942: Tex Avery releases his first MGM cartoons, Bob Clampett introduces one of the most iconic members of the Looney Tunes cast, Chuck Jones finally finds his footing as an animation director, and the toons quite literally go to war!
 
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I'm currently working on the 1942-1944 entries in this timeline. However, there's two things that I'm currently at an impasse with:
  1. Should I continue covering each year individually, or should I group events from multiple consecutive years together to cover them all at once if they're similar enough to each other or there aren't too many big divergences? I'm asking because a lot of the notable animation events in 1942 tend to carry over into 1943, and to an extent into 1944.
  2. How should I handle Paramount's seizure of Fleischer Studios (and the subsequent rebrand into Famous Studios)? Should I keep it or butterfly it? The latter would most likely require Dave Fleischer to not agree to do animation at Columbia behind Paramount's back, thus not giving Paramount's executives the excuse they need to boot the Fleischer brothers from their own studio.
Please let me know your thoughts on the matter. Your contributions are very much appreciated!
 
Do Dave and Max still fall out around the same time? If so, maybe Dave can give Max his part of the studio
I did say in the 1941 post that the Fleischer brothers weren't on positive terms with each other by the time Paramount approached them to do the Superman cartoons, so the answer would be yes. As for Dave giving Max his part of the studio before leaving for Columbia Pictures, that's actually a pretty good idea!
 
1941 would see the departure of Tex Avery from Warner Bros., on account of a dispute with producer Leon Schlesinger over the ending to the Bugs Bunny short The Heckling Hare. Prior to this, Avery had been a valuable asset to the Warner Bros. animation studio since his initial hiring there in 1935, helping to break the studio out of the slump it'd found itself in during the early 1930s by moving them away from the "Disneyish" style of cartoon making and toward a more wild, sarcastic, absurdist and irreverent style of humor, abound with fast-paced gags, innuendos, and characters braking the fourth wall. Traits like these had since become established staples of both the cartoons made by Warner Bros. and the cartoons directed by Avery himself.

Needless to say, it didn't take long for Avery to find a new source of work. MGM was on the lookout for new animation directors following the departure of Hugh Harman from the company in April (Hanna and Barbera, along with their animation unit, would be focused almost exclusively on creating new Tom and Jerry cartoons by the end of the year), and by September it was announced that they'd worked out a 5-year contract with Avery that would see him establish his own animation unit within the company to produce cartoons in Technicolor. Warner Bros. would also bounce back from Avery's departure, as director Robert "Bob" Clampett (a frequent collaborator with Avery during the latter's tenure at Warner Bros.) would take over Avery's former animation unit.

At the 14th Academy Awards ceremony, Bugs Bunny would once again compete with Tom and Jerry for the Award for Best Animated Short Subject, and once again neither of their shorts (Hiawatha's Rabbit Hunt for the former, The Midnight Snack for the latter) would win - though this time, the winner wouldn't be from either of their home animation studios. No, the winning short this year would be the animated debut of what would become the most iconic superhero in American comics - Superman.

Having been approached by Paramount to adapt the comic book series following the modest success of their second animated feature, Mr. Bug Goes to Town, Max and Dave Fleischer initially tried to scare the executives off by demanding a budget of $100,000 per short, having wanted to scale back a bit after two animated films more-or-less back-to-back (not to mention that the brothers weren't exactly on positive terms with each other around this time). Paramount was able to negotiate the Fleischer brothers down to $50,000 per short - the most expensive budget approved for an animated short thus far. Realizing that this was an offer too good to refuse, the Fleischers agreed to Paramount's request, and the results of the larger budget showed in the art and animation.

Disney (both the studio and Walt himself), meanwhile, was not in a good position. Already faced with the financial failure of the studio's last two films and the success of the studio's rivals, Disney's animators would also go on strike in protest of the studio's disorganized pay structure and favoritism toward head writers and animators, as well as Walt's own control freak nature toward the studio and its projects - the last straw was Walt's refusal to sign a contract with the Screen Cartoonists Guild to unionize the studio. Walt himself was in denial that anything was wrong with the studio's labor structure, and saw the strike as a personal betrayal, especially since Art Babbitt, the studio's highest-paid animator, resigned as president of Disney's company union to join the guild, siding with his fellow animators - Walt's response was to fire Babbit and 16 other union sympathizers, which would kick off the strike in earnest (reportedly, Walt had to be held back from attacking Babbitt at one point during the strike). Eventually, after taking a goodwill tour to South America while waiting for tensions to cool off (during which the studio's next animated feature, Dumbo, released - it managed to break even and alleviate the financial issues caused by the 1940 flops, but wasn't much more successful beyond that due to both the Fleischers' movie and boycotts from those sympathetic to the striking animators), Walt conceded to the demands of the striking employees under pressure to maintain both public image and funding for Disney as a company - among those demands were the reinstatement of employees fired prior to and during the strike. Though even then, many employees who participated in the strike did not return to the House of Mouse following the strike's conclusion - or, to put it more accurately, Walt and the employees who sided with him made sure to let them know that those employees were no longer welcome at the studio, with Walt laying them off whenever he had the opportunity to (especially after the 90-day arbitration period ended), while others left of their own accord due to tense and embittered working relations. Many of these employees went to work for other animation studios, some would transfer their talents to the realm of comics, and a few would even go on to found their own studio, the United Productions of America (UPA for short). Whatever semblance of camaraderie or togetherness that Walt had tried to foster at his studio, the strike had broken beyond repair... something that the other animation studios would've been quick to capitalize on, were it not for events beyond any of their control.

You see, while all of this was going on, World War II was raging overseas. And following an attack on Pearl Harbor by Imperial Japan on December 7th, the United States of America would officially enter into it...
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Welcome to the second entry in the Mixed Nutz timeline! We've got some more setup here - most notably, one of WB's best is now playing for the other team! For now, though, it'll just be limited to animated shorts, but we might see Avery direct an animated feature film later on in this timeline. That just leaves two questions - 1: What kind of feature film would best suit Tex Avery's directing style, and 2: Will Warner Bros. beat MGM to the punch when it comes to releasing an animated feature film? You'll just have to wait and see...

And yes, I am aware that IOTL, Disney won the award for their 1941 short Lend A Paw. This is another point of divergence meant to make Disney more vulnerable (then again, the strike's already doing a pretty good job at that) - my guess is that following TTL's success of Gulliver's Travels, there's be more (positive) critical attention toward Fleischer Studios' animated output. And this isn't going to be the last time Disney misses out on an Oscar that they won IOTL. Not by a long shot. Speaking of points of divergence, Mr. Bug Goes to Town does better financially here - I figured that, with Gulliver's Travels having been both less expensive to produce and more financially successful ITTL, the Fleischers would be able to have a smoother production cycle for Mr. Bug and feel confident enough to release it earlier rather than holding off until December to avoid direct competition from Disney's movie, and Paramount would be more inclined to advertise the film (part of this rationale was suggested by @MoistLasagna). I'm willing to bet that Paramount might even take advantage of the animators' strike to promote their animated film as an "alternative" to Disney's...

Of course, given both the 1941 Disney strike and the issues IOTL that led to Paramount seizing control of Fleischer Studios (renaming it Famous Studios in the process), I wonder if I should just have Warner Bros. and MGM strike while the iron is hot - as in, within the early-to-mid 1940s, while their biggest competitors in animation are at their most vulnerable (another animation studio is certainly going to). Then again, with the US about to enter into the most important war of the 20th century at this point, I'm not sure that they'd have much of an opportunity to do so...

Next up in 1942: Tex Avery releases his first MGM cartoons, Bob Clampett introduces one of the most iconic members of the Looney Tunes cast, Chuck Jones finally finds his footing as an animation director, and the toons quite literally go to war!
Cool! Could Paramount buy DC ITTL?
 
I did say in the 1941 post that the Fleischer brothers weren't on positive terms with each other by the time Paramount approached them to do the Superman cartoons, so the answer would be yes. As for Dave giving Max his part of the studio before leaving for Columbia Pictures, that's actually a pretty good idea!
Ooh, maybe Dave starts his own studio at Columbia if this happens?
I'm currently working on the 1942-1944 entries in this timeline. However, there's two things that I'm currently at an impasse with:
  1. Should I continue covering each year individually, or should I group events from multiple consecutive years together to cover them all at once if they're similar enough to each other or there aren't too many big divergences? I'm asking because a lot of the notable animation events in 1942 tend to carry over into 1943, and to an extent into 1944.
Maybe keep the format as is for now until we get to the meatier parts, then break them up.
  1. How should I handle Paramount's seizure of Fleischer Studios (and the subsequent rebrand into Famous Studios)? Should I keep it or butterfly it? The latter would most likely require Dave Fleischer to not agree to do animation at Columbia behind Paramount's back, thus not giving Paramount's executives the excuse they need to boot the Fleischer brothers from their own studio.
Or......keep Max at Fleischer and let Dave go to Columbia.....
Please let me know your thoughts on the matter. Your contributions are very much appreciated!
Here.
 
I did say in the 1941 post that the Fleischer brothers weren't on positive terms with each other by the time Paramount approached them to do the Superman cartoons, so the answer would be yes. As for Dave giving Max his part of the studio before leaving for Columbia Pictures, that's actually a pretty good idea!
Speaking of this, I was thinking that Dave could remain at Columbia instead of getting fired in 1944.
 
1942-1943: SEND MORE CATS! -Signed, Lt. Jerry Mouse
With the United States now fully involved in World War II, it was naturally expected that their animated characters would follow suit. Thus, new cartoons were produced featuring the likes of Popeye, Donald Duck, and Bugs Bunny duking it out with the Axis Powers.

The top talent at Termite Terrace would be tasked with turning out training films for the troops. Thus was born the Private Snafu (acronym for Situation Normal, All Fouled Up) series of cartoons, in which the titular private demonstrates what not to do when serving in the U.S. military (often getting killed as a result of his ineptitude). Not that their main brand of Looney Tunes/Merrie Melodies produced during this time were anything to sneeze at, either - in particular, director Charles "Chuck" Jones had finally joined the rest of his colleagues in breaking away from the Disney style of directing cartoons and had brought his own innovations to the wacky cartoon world at Warner Bros. with cartoons such as The Draft Horse and The Dover Boys at Pimento University. Meanwhile, Bob Clampett brought his A-game to the table during this time, with his most notable contribution being the introduction of Tweety in the cartoon A Tale of Two Kitties. This seemingly harmless little bird would go on to not only have the most longevity out of all the Looney Tunes characters created by Clampett, but also play a key role in Warner Bros. securing a major victory over MGM a few years down the line.

Speaking of MGM, Tex Avery had come in swinging with the Academy Award-nominated short The Blitz Wolf, a World War II propaganda take on the tale of The Three Little Pigs. It wouldn't even be his most notable spin on a classic fairy tale at MGM - that honor would go to 1943's Red Hot Riding Hood, a Hollywood-style sendup of Little Red Riding Hood that featured Red herself as an attractive nightclub singer. The wolf character from both shorts would go on to serve a number of antagonistic roles in several of Avery's MGM cartoons, often being paired up against another of Avery's recurring MGM characters - a melancholic yet incredibly competent basset hound by the name of Droopy (introduced in the 1943 short Dumb-Hounded). Between these and several other successful cartoons down the line, it was clear that MGM's decision to hire Avery was paying off - which was fortunate, as another of the studio's veteran animators, Rudolf Ising, would leave the company after being drafted to fight in the war.

Bill Hanna and Joe Barbera, meanwhile, were continuing to refine the Tom and Jerry formula, producing several of their most noteworthy shorts during this period - one of which, The Yankee Doodle Mouse, would net the first of many Academy Awards for the cat-and-mouse duo. Though, much to the frustration of Bill and Joe, they wouldn’t be the ones to claim those awards - that honor was given to the producer of the cartoons, in this case Fred Quimby, who to add insult to injury would not even thank or credit the duo for their work when accepting the awards.

Disney is… well, surviving, at least. The war had already more-or-less closed off overseas market for his feature films even before the US got fully involved in it (a major factor in his 1940 pictures bombing at the box office), and now that the US was involved it was bleeding them domestically as well, as evidenced by his next feature (an adaptation of Felix Stalen’s novel Bambi, regarded by Walt as his personal favorite of the films his studio had produced) being another financial failure despite positive critical reception. The studio was able to make ends meet despite the employee exodus and film financial failures by producing wartime propaganda pictures (one of which, Der Fuehrer's Face, managed to claim another Academy Award for Best Animated Short Subject for Disney - their last one for a long while) and “package” feature films that showcased a selection of animated shorts connected via a framing device. The first of these efforts, the 1943 film Saludos Amigos, was originally intended as a series of 12 shorts meant to promote goodwill between the US and South America, but four of those shorts were instead linked with live-action footage from Disney’s own goodwill tour to South America (both real and faked) to form the “movie” because Disney felt that it’d be more marketable that way (four more of these shorts would be subject to a similar approach for the studio's next package feature, The Three Caballeros, in 1945).

Fleischer Studios seems to be doing alright on the surface - the Superman cartoons are still astounding audiences with their impressive animation, while Popeye adapted quite well into the wartime propaganda pictures as a member of the US Navy, a position that he would maintain for the remainder of his theatrical cartoon tenure. Behind the scenes, though, things were far from smooth sailing, as the Fleischer brothers were at odds with each other over, among other issues, what direction they wanted the studio's creative efforts to go in (Dave was particularly livid about Max's desire to end the Popeye series after the license from King Features ran out, despite Popeye being the studio's primary moneymaker). This would culminate in Dave Fleischer resigning from the studio in 1942 to sign a deal with Columbia Pictures to make cartoons for their animation unit Screen Gems, leaving his brother Max with his stake in the studio. Paramount, who'd been hoping to claim full control over Fleischer Studios, saw this as their moment to strike, and tried to pressure Max into resigning, even using his son-in-law Seymour Kneitel's position as creative head of the studio in an attempt to blackmail him. Eventually in the summer of 1943, an agreement was reached - the studio would become a full subsidiary of Paramount, but Max would retain creative control over the studio's output (the exception being that Paramount would decide whether or not to renew their licensed properties - which, unsurprisingly, they already did in the case of Popeye), and none of the staff would be fired (for now). To cement this shift in control over the studio, both parties agreed to a rebrand - and thus, what was once Fleischer Studios became Famous Studios.

Lastly, there’s one other animation studio that’s flown under the radar so far - Walter Lantz Studios (named after the founding animation director), at the service of Universal Productions. Lantz had recently found success back in 1941 (if not to the same extent as his contemporaries) with the studio's latest star - the screwball Woody Woodpecker, who quickly displaced the studio's former mascot Andy Panda. Yet now that Disney and Fleischer had proven that animated films were a viable source of revenue and were in a turbulent period that left them vulnerable, Lantz felt that the time was right to make his own move in the animated feature film business. And he had just the right idea in mind for his feature debut - a comedic take on the story of Aladdin, featuring the famous comedic duo Bud Abbott and Lou Costello.
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I decided to cover 1942 and 1943 together because there really isn't anything that's too radically different ITTL in the field of animation in either of these years, and the major events from OTL in the field of animation that happened in those years tend to bleed into one another (hence why I also decided to address The Three Caballeros here, as it was part of the same "animated shorts turned package film to increase marketability" deal that Saludos Amigos was). The major divergence so far is that Paramount's absorption of Fleischer Studios (and subsequent rebrand into Famous Studios) happens under slightly different circumstances - namely, Dave leaves the studio immediately after signing a deal to make cartoons at Columbia rather than trying to work at both studios behind Paramount’s back, while Max and many of the other Fleischer employees who were fired IOTL during the rebrand get to stay on board provided that they agree with said rebrand. Also, it happens a year later than OTL. If anyone has some IRL facts about the history behind the Fleischer-to-Famous rebrand that would complicate or contradict my take on the events (keeping in mind the divergences already made regarding the success of Gulliver and Mr. Bug ITTL), I'd be happy to revise them in turn!

Next up, Walter Lantz steps up to the plate with his Abbott and Costello animated feature. Will it be a home run, or will Lantz strike out? I don't know! ("Third base!")
 
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