Japanese entertainment giant Toho Co., Ltd. preparing to buy 100% of the equity of animation distributor GKIDS, Inc. in North America.
While financial details of the deal were not disclosed, the acquisition will establish GKIDS as a wholly owned subsidiary of Toho International, Toho's U.S.-based subsidiary.
GKIDS will continue to operate under the leadership of founder and CEO, Eric Beckman, along with President Dave Jesteadt.
Beckman and Jesteadt expressed their excitement about the new partnership, saying: “GKIDS will continue to operate with the same team and mission, now with the support of Toho, the home of The symbolism of Godzilla and Akira Kurosawa's legacy. This partnership will enable us to expand our reach and further elevate animation as a cinematic art form.”
The acquisition is in line with Toho's long-term growth strategy according to the “TOHO VISION 2032 TOHO Group Management Enterprise Strategy. ”
The initiative aims to expand Toho's presence in international markets by connecting Japanese productions with global audiences.
Toho President and CEO Hiro Matsuoka expressed enthusiasm for the partnership, saying: “GKIDS has built a unique position in the U.S. market, perfectly suited to the Toho's strength. This partnership will accelerate Toho's animation priorities, expand the market and support IP creation.”
GKIDS has a strong track record of distributing popular films, including Weathering With You by Makoto Shinkai and Promare by Studio TRIGGER.
The two companies have previously collaborated to distribute projects such as Spirited Away: Live on Stage and other Studio Ghibli works.
Toho's acquisition of GKIDS follows several successful collaborations between Toho and GKIDS.
In December 2023, The Boy and the Heron—distributed by GKIDS—became the highest-grossing Studio Ghibli film in North America.
At the same time, Godzilla Minus One Toho's film set a record as the highest-grossing Japanese live-action film in the US. Both films were celebrated at the 96th Academy Awards, with each taking home the Academy Award.
In recent years, Toho acquired animation studio Science SARU and invested equity in Los Angeles-based production company Fifth Season.
Nomura Securities Co., Ltd. served as exclusive financial advisor to Toho on the acquisition, with legal advisory services provided by Nishimura & Asahi.
ACF Investment Bank acted as financial advisor to GKIDS, assisted by Sheppard Mullin Richter & Hampton LLP as legal advisor.
Toho holds more than 45% of Japan's domestic film distribution market and has collaborated with iconic filmmakers such as Akira Kurosawa and Makoto Shinkai. The company has also partnered with Studio Ghibli and other major IP creators to bring Japanese cinema to global audiences.
Source: GKIDS official website