In the latest news of surprise business acquisitions and mergers that make sense at first glance, Toho Animation, the self-proclaimed leader in Japanese entertainment, has announced its acquisition of Gkids, a North American animation producer and distributor.
Earlier today, Gkids published a press release describing its acquisition by the Los Angeles-based Toho as one where Toho would acquire 100% equity from Gkids. At the same time, the other would maintain its independence (and folks in power as CEOs and whatnot) while utilizing Toho’s connections to bolster its commerce and further its reach in the entertainment world. What does all that mean to the average fan of Japanese entertainment and anime? Two mega powers in the industry are combining forces to compete against other companies that are jockeying for our precious attention, such as Disney.
A key motivator behind Toho and Gkids’ partnership is the winning success both companies experienced at the box office this past year with Godzilla Minus One and Hayao Miyazaki’s The Boy and the Heron. As Gkids states in its press release, both films earned significant achievements within a week of each other, with the former earning the highest box office revenue for a Japanese live-action film in the states and the third largest-grossing foreign film in U.S. history, and the latter becoming Studio Ghibli’s highest-grossing film in the U.S.
And even beyond that, the two aren’t strangers to one another, having collaborated with the theatrical releases of animated films like Spirited Away: Live on StageMakoto Shinkai’s Weathering With Youand animation Studio Trigger’s Promare. Reading between Gkids’ press release lines, the two likely decided to perform a fusion dance of sorts after making their presences felt during the most recent awards season (including the Oscars). To put one’s capitalistic cap on, the two aim to have their combined forces lead to a repeat of their individual successes with the aforementioned award-winning films as a united front.
“Gkids will continue to operate as we always have—with the same team, the same passion, and the same mission—but now with the backing of a highly complementary and legendary parent company,” Gkids founder Eric Beckman and president David Jesteadt wrote in a joint statement. “This partnership will empower us to bring even more amazing films to North American and global audiences, while we continue to champion animation as a cinematic artform and push the limits of what the medium is capable of. We could not be more excited about the opportunities in front of us. The best is yet to come.”
While Toho has become a household name for many an anime fan thanks to big marquee shonen series like Dragon Ball Z and Jujutsu KaisenGkids has become a bit of a rising star in the cultural zeitgeist. Its North American theatrical distribution and home video releases of Look Back, Dan Da Dan, The First Slam Dunkand Arcane season one are the most recent money-move examples of Gkids putting itself on the map for fans of Japanese entertainment and animation. Likewise, Toho has been on a future-sighted acquisition spree, recently taking on Scott Pilgrim Takes Off, Dan Da Danand Devilman Crybaby animation studio Science Saru.
“Through their hard work, vision, and integrity, Gkids has built a unique position in the U.S. market, which dovetails perfectly with Toho’s own strengths and strategic mission,” Toho president and CEO Hiro Matsuoka wrote in the press release. “This partnership accelerates Toho’s goals to prioritize animation, develop international markets, and support IP creation, while bringing exceptional Japanese and animated content to global audiences.”
Hopefully, this no-brainer acquisition doesn’t lead to an influx of layoffs across Toho or Gkids, as we’ve seen countless times in the video game industry. In the meantime, the likes of Disney and Netflix can look forward to steep competition at both the box office and during awards season.
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