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January 3, 1988


By CBR Staff Writer

Computer Memories Inc is determined to use the $25m or so cash it has left over from its defunct disk drive manufacturing business to get into the bright lights of the entertainment business, and having called off its plan to merge with moviemaker Hemdale Film Corp after it became aware of outstanding lawsuits against the latter, it has found itself a new partner: the Chatsworth, California shell company now says it intends to merge with privately-held Burbank, California-based family entertainment firm DIC Animation City Inc, which makes cartoon films for daytime television; Computer Memories shareholders will end up with about one third of the enlarged company.

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