Japanese entertainment giant Toho has reached an agreement to buy the Oscar-winning American animation distributor and producer GKids as part of its global expansion strategy.
New York and Los Angeles-based GKids will become a wholly-owned subsidiary of Los Angeles-based Toho International, and GKids founder Eric Beckman and Dave Jesteadt will remain as CEO and president, respectively.
Financial terms of the 100% equity acquisition were not disclosed. The move accelerates the Japanese company’s Toho Vision 2032 Toho Group Management Corporate Strategy to expand operations beyond Japan and connect creators and productions with the international fan base.
It also builds on an existing relationship. Toho is the Japanese domestic distributor for many of the same properties handled by GKids in North America including the films of Studio Ghibli, Belle and Mirai director Mamoru Hosoda, and Weathering With You director Makoto Shinkai. They have also collaborated on Studio Trigger’s Promare, and Spirited Away: Live On Stage.
Beckman and Jesteadt have run GKids together since the company released the Oscar-nominated The Secret Of Kells as a two-person company back in 2009. Since then the company has garnered 13 best animated feature nominations including this year’s Academy Award winner, Hayao Miyazaki’s The Boy And The Heron, which became Studio Ghibli’s highest earner at the North American box office on $46.8m.
Screen was unable to confirm that the acquisition by Toho will enable GKids to spend more on acquisitions and productions. However speaking to Screen back in March a couple of weeks after the Oscars, Jesteadt said the company planned to work on bigger releases, adding: “For the right film, there’s a very high ceiling as to where these types of stories can go.”
The Boy And The Heron went on release in North American last December, one week after Toho International opened Godzilla Minus One, which went on to become the highest-grossing Japanese live-action film in the United States on $56.4m and eventually won the visual effects Oscar.
Toho acquired Japanese animation studio Science SARU (Scott Pilgrim Takes Off, DAN DA DAN) and also made an equity investment in Los Angeles-based production and distribution company Fifth Season, the company known for Severance and Tokyo Vice, among others.
Toho president and CEO Hiro Matsuoka said GKids “dovetails perfectly with Toho’s own strengths and strategic mission”, adding: “This partnership accelerates Toho’s goals to prioritise animation, develop international markets, and support IP creation, while bringing exceptional Japanese and animated content to global audiences.”
Beckman and Jesteadt said, “For all GKids’ filmmakers, content partners, distribution partners, and especially the fans, this is truly great news… The best is yet to come.”
Nomura Securities Co. Ltd. acted as exclusive financial advisor to Toho, and Nishimura & Asahi (Gaikokuho Kyodo Jigyo) acted as legal advisor. ACF Investment Bank acted as exclusive financial advisor to GKids with Sheppard Mullin Richter & Hampton LLP acting as legal advisor.
Originally published at https://www.screendaily.com/news/toho-acquires-oscar-winning-animation-distributor-producer-gkids/5198198.article
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