Toho Animation, a prominent figure in Japanese entertainment, has recently announced the acquisition of Gkids, a North American animation producer and distributor. Gkids released a press statement outlining the acquisition, in which Toho will acquire full equity in Gkids. Despite this, Gkids will retain its independence and leadership team while utilizing Toho’s extensive network to expand its commercial and entertainment reach. This strategic partnership between the two companies aims to enhance their competitive edge against other major entities in the industry, such as Disney.
The collaboration between Toho and Gkids is driven by their recent successes at the box office, exemplified by films like “Godzilla Minus One” and Hayao Miyazaki’s “The Boy and the Heron.” Both films achieved significant milestones, with the former achieving the highest box office revenue for a Japanese live-action film in the U.S. and ranking as the third-largest-grossing foreign film in U.S. history. Meanwhile, the latter became Studio Ghibli’s highest-grossing film in the U.S.
Toho and Gkids have previous collaborative experience with the theatrical releases of animated films like “Spirited Away: Live on Stage,” “Weathering With You” by Makoto Shinkai, and “Promare” from Studio Trigger. The strategic partnership has been perceived as a natural progression following the success both companies experienced during the recent awards season, including the Oscars. The expectation is that combining their efforts will allow them to replicate their past achievements with a unified approach.
Eric Beckman, founder of Gkids, and David Jesteadt, president of Gkids, expressed their enthusiasm for the partnership, stating that Gkids will continue its operations with the backing of a compatible and historically significant parent company. They are optimistic about the possibilities this partnership brings, emphasizing their commitment to animation as a cinematic art form.
Toho has maintained a strong position in the anime industry through renowned series like “Dragon Ball Z” and “Jujutsu Kaisen,” while Gkids has gained recognition in the cultural landscape. Gkids’ recent North American theatrical distribution of titles like “Look Back,” “Dan Da Dan,” “The First Slam Dunk,” and “Arcane” season one has solidified its presence among fans of Japanese entertainment. Similarly, Toho has been expanding its portfolio with recent acquisitions of the animation studio Science Saru, known for works like “Scott Pilgrim Takes Off,” “Dan Da Dan,” and “Devilman Crybaby.”
Toho’s president and CEO, Hiro Matsuoka, emphasized in the press release that Gkids has established a unique position in the U.S. market, aligning well with Toho’s strengths and strategic goals. He stated that the partnership advances Toho’s objectives of focusing on animation, expanding international markets, and supporting intellectual property creation while delivering exceptional Japanese and animated content to worldwide audiences.
The acquisition is intended to strengthen both companies without resulting in significant layoffs, a concern often observed in similar transactions within the video game industry. With this move, companies like Disney and Netflix can expect heightened competition both at the box office and during awards season.