Toho Animation, a prominent entity in Japanese entertainment, has recently announced its acquisition of Gkids, a North American animation producer and distributor. Gkids disclosed in a press release that Toho will acquire full equity from them while allowing Gkids to maintain independence. This acquisition aims to leverage Toho’s connections to expand Gkids’ market presence in the entertainment sector, positioning the combined strengths of both companies to compete with giants such as Disney.
The motivation for this partnership between Toho and Gkids is largely rooted in their recent box office successes with titles like “Godzilla Minus One” and Hayao Miyazaki’s “The Boy and the Heron.” These films have achieved significant milestones, including “Godzilla Minus One” obtaining the highest box office revenue for a Japanese live-action film in the U.S., and Studio Ghibli’s “The Boy and the Heron” becoming their highest-grossing film in the country.
Toho and Gkids have a history of collaboration, having worked together on the theatrical releases of films such as “Spirited Away: Live on Stage,” Makoto Shinkai’s “Weathering With You,” and Studio Trigger’s “Promare.” Their decision to merge comes after making a notable impact during the most recent awards season, with aspirations to replicate their individual successes through this union.
In a joint statement, Gkids founder Eric Beckman and president David Jesteadt expressed enthusiasm for the partnership with Toho, emphasizing that the collaboration will enable them to continue delivering exceptional films to North American and global audiences. They highlighted the potential to further explore animation as a cinematic art form with the support of Toho.
Toho’s prominence in the anime world includes major titles like “Dragon Ball Z” and “Jujutsu Kaisen,” while Gkids has gained attention for distributing North American theatrical releases and home videos such as “Look Back,” “Dan Da Dan,” “The First Slam Dunk,” and the first season of “Arcane.” Recently, Toho has been proactive in expanding its portfolio, acquiring projects like “Scott Pilgrim Takes Off” and collaborating with the animation studio Science Saru.
Hiro Matsuoka, Toho’s president and CEO, stated that the partnership aligns well with Toho’s strategic goals to prioritize animation and expand international markets. It is hoped that this acquisition will not result in layoffs, a trend seen in past industry consolidations.
As the merger progresses, competitors like Disney and Netflix can anticipate increased competition, both at the box office and during awards seasons.
