Editing Fleischer Studios (section)

=== Acquisition by Paramount ===
{{See also|Famous Studios}}
While profits dwindled, Paramount continued to advance money to Fleischer Studios to continue the production of cartoons with its focus mainly on ''Popeye'', ''Superman'', and ''[[Mr. Bug Goes to Town]]'', a new feature film for the 1941 Christmas season. On May 24, 1941, Paramount demanded reimbursement on the penalties still owed after 18 months and assumed full ownership of Fleischer Studios, Inc.<ref name="BarrierBug">Barrier, Michael (1999). ''Hollywood Cartoons''. New York: Oxford University Press. Pgs. 303–305. {{ISBN|0-19-516729-5}}.</ref> The Fleischers remained in control of production until that November. ''Mr. Bug Goes to Town'', intended for release in December 1941, was not released until February 1942, and never recouped its costs.

In spite of living up to his contractual obligations and delivering the film, Max Fleischer was asked to resign. Dave Fleischer had resigned the month before, and Paramount finished out the last five months of the Fleischer contract without the Fleischer brothers. The last cartoon produced at the credited Fleischer Studios was the ''Superman'' cartoon ''[[Terror on the Midway]]''.<ref name="BarrierBug" /> Paramount formed a new company, [[Famous Studios]], as a successor to Fleischer Studios effective on July 3, 1942.