The studio was founded by Richard Rich, who previously worked at Disney. The studio's first and most famous film was The Swan Princess, which was rather successful on initial release. After the animated remake The King and I was released in 1999 and The Trumpet of the Swan was released in 2001, due to bankruptcy and losses they were taken over by Crest Animation Studios (CEO: A. K. Madhavan), an Indian animation studio, to form RichCrest Animation Studios. Lions Gate has entered into a deal with RichCrest Animation Studios to make three 3D animated feature-length productions, the first of these, Alpha and Omega. Alpha and Omega is the third most well-known film of the studio in critical reception and the first in box office. The currently highest rated film of Crest Animations is its sequel Alpha and Omega 2: A Howl-iday Adventure, which holds a 7.3/10 score in IMDb and a 55% in Rotten Tomatoes. The film also proved huge success on fans and audiences alike.
In February 2007, it was renamed to its current name and it was announced that it is "expanding its business to become a full-service animation studio specializing in the development and production of CGI-animated properties for theatrical, television, home entertainment and interactive distribution".