Late yesterday, it was announced that Toho Corporation, the legendary Japanese studio known for director Akira Kurosawa and the Godzilla films, has acquired North American animation production and distribution company GKIDS, Inc. The studio has reached a 100% stock transfer agreement with the New York and Los Angeles-based company. Financial terms were not disclosed.
What this means for the Academy Award-nominated company that distributed Hayao Miyazaki’s The Boy and the Heron, which won Best Animated Feature last year, is that it is now a wholly owned subsidiary of Toho. The company will continue to be led by Founder and CEO Eric Breckman and President David Gestedt. The two have run the company since 2009, growing it from a two-person operation to one of North America’s leading animation companies.
If there’s one company that created the theatrical release market for anime in North America over the past decade, it’s GKIDS. The company has successfully brought anime films by directors Miyazaki, Mamoru Hosoda, and Masaki Yuasa to a variety of markets. The company has created a successful model for other distributors to follow, either through limited screenings through Fathom Events or through wide release. Currently, the company is enjoying success with the release of Look Back, which had a successful limited rollout before the larger release.
Anime theatrical releases have become big business in the last decade. The Boy and the Heron opened at No. 1 at the box office, grossing nearly $47 million here, according to Box Office Mojo. Currently, anime distribution companies like Crunchyroll are exhibiting at CinemaCon, so Toho, which currently produces the biggest anime series such as “My Hero Academia” and “Jujutsu Kaisen,” is planning to release its own anime. It’s natural to want a North American distribution company. Therefore, purchasing an established North American distributor instead of releasing through an intermediary like Crunchyroll is a wise move for the legendary studio.
Please read the press release below.
Los Angeles, CA, October 15, 2024 – Japanese entertainment leader Toho Corporation today agrees to acquire 100% of GKIDS, Inc., an Academy Award-winning North American animation production company. announced that it had been reached. Wholesaler. Financial terms were not disclosed.
GKIDS, which has offices in New York and Los Angeles, will become a wholly-owned subsidiary of Los Angeles-based Toho International. GKIDS founder Eric Beckman will remain CEO and Dave Gested will remain president. The two have been running GKIDS together since 2009, when the company became the first two-person company to release the Academy Award-nominated film The Secret of Kells. Together, the two have built GKIDS into a powerful force in the U.S. animation scene, amassing 13 outstanding animated features. It was nominated for Best Animated Feature at the Academy Awards, and last year’s winner was Hayao Miyazaki’s The Boy and the Heron.
Toho’s acquisition of GKIDS will further accelerate Toho Group’s “TOHO VISION 2032 Toho Group Management Strategy,” which defines Toho Group’s growth and expansion plans outside of Japan, and will provide more direct access to works, creators, and studios in Japan and overseas. We aim to connect it to A wide range of overseas creators and fans. Toho has acquired Japanese animation studio Science SARU (“Scott Pilgrim Take Off,” “Dan Da Dan”) and also acquired Los Angeles-based production and distribution company Fifth Season (previously Endeavor).・We also made stock investments in Severance and Tokyo Vice, which were known as Content. Through GKIDS, Toho will add an established and highly regarded North American theatrical and home entertainment distribution, marketing and sales operation that complements Toho International’s banner licensing, merchandising and e-commerce operations. As a result, GKIDS will be able to leverage the synergies and capabilities of the larger Toho parent group while maintaining its own brand, organization and management team.
Toho and GKIDS have collaborated for many years on hit films such as Makoto Shinkai’s Weathering with You, Studio TRIGGER’s Promare, and Spirited Away Live on Stage. Toho is also the Japanese agent for many of the same properties that GKIDS handles in North America, including works by Studio Ghibli, Mamoru Hosoda, Makoto Shinkai, and more.
In December 2023, just one week after the release of Toho International’s Godzilla Minus One, GKIDS released Studio Ghibli’s The Boy and the Heron. Both films were phenomenal successes at the box office, with The Boy and the Heron debuting at number one, GKIDS’ highest grossing film, and Studio Ghibli’s highest grossing film in North America. , “Godzilla Minus One” achieved the highest box office revenue. It became the highest grossing foreign language film of all Japanese live-action films in the United States, and the third highest grossing foreign language film in U.S. history. The two companies shared a night of celebration at the 96th Academy Awards in March of this year, with both titles winning Oscars.
Hiro Matsuoka, President and CEO of Toho, said, “Through hard work, vision, and integrity, GKIDS has built a unique position in the U.S. market that is unique to Toho. Perfectly aligned with our strengths and strategic mission. This partnership will prioritize animation, develop international markets and support the creation of intellectual property, while bringing outstanding Japanese and animation content to audiences around the world. We are honored to work with Eric, Dave and the entire GKIDS team and welcome them to the Toho family.”
“This is truly great news for all of GKIDS’ filmmakers, content partners, distribution partners, and especially our fans,” Beckman and Jested said. “GKIDS will continue to operate as we always have, with the same team, the same passion, and the same mission, but now with the support of a very complementary and legendary parent company. We’re really excited to be partnering with the respected and historic Toho, the home of Akira Kurosawa and Akira Kurosawa, as well as blockbuster anime series like My Hero Academia and Jujutsu Kaisen. will enable us to bring even more great films to audiences in North America and around the world, while continuing to champion animation as a cinematic art form and pushing the boundaries of what this medium can do. I couldn’t be more excited about the opportunities in front of me. The best is yet to come.”
Nomura Securities Co., Ltd. served as Toho’s exclusive financial advisor, and Nishimura & Asahi Law Office (Gaikokuho Joint Venture) served as its legal advisor. ACF Investment Bank served as exclusive financial advisor to GKIDS, and Sheppard Mullin Richter & Hampton LLP served as legal advisor.
About Toho Co., Ltd.
Founded in 1932, Toho has grown its business in the film, real estate, and formal theater sectors. In the film field, the Toho Group maintains a share of over 45% of the Japanese distribution market, with domestic titles distributed by Toho and foreign films distributed by Toho Towa and Towa Pictures. Toho Group operates 722 screens at the exhibition, and has a domestic market share of approximately 30%. In recent years, Toho has strengthened its development and production capabilities, and its own works now account for about 25% of its approximately 25 titles a year. Toho continues to introduce an interesting, creative and innovative world of film through extensive collaboration with Japanese intellectual property owners. Throughout its 92-year history, Toho has worked with notable Japanese filmmakers such as Akira Kurosawa, Yasujiro Ozu, and Kenji Mizoguchi, whose ideas and characters still resonate with modern audiences today. Ta. Toho, which boasts over 7,000 titles, has created masterpieces with a variety of talents. Toho continues on this path by remaining a trusted distribution partner for industry veterans such as Studio Ghibli, all major television networks, and Japan’s leading director Makoto Shinkai.
About Toho International Co., Ltd.
Toho International, Inc., the U.S. subsidiary of Japan’s Toho Co., Ltd., brings the iconic Godzilla and other popular anime titles to audiences around the world through a dynamic licensing, merchandising and e-commerce business. . Having told the story of Godzilla for more than 70 years, Toho International’s licensing program spans toys, games, apparel, accessories, publishing and more, captivating fans across generations.
In addition to its strong presence in live-action and animated films, Toho International maximizes its IP through a dedicated Godzilla and anime e-commerce platform, offering exclusive merchandise directly to consumers. Toho International continues to grow its brand and expand its reach in the North American market by leveraging strategic partnerships, always-on streaming content, and a variety of licensed products.
About GKIDS Co., Ltd.
GKIDS is an Academy Award®-winning producer and distributor of award-winning, artist-driven animation from around the world. The company won an Oscar in 2024 for Hayao Miyazaki and Studio Ghibli’s acclaimed feature film The Boy and the Heron, after garnering a staggering 13 nominations in the animated feature category. The company’s previous nominations include 2010’s The Secret of Kells, 2012’s Chico and Rita, 2014’s Ernest & Celestine, and 2015’s The Princess Kaguya. Includes “Story”, “Song of the Sea”, “Boy and the World” and “When Marnie Was There”. “My Life as a Zucchini” in 2016, “The Breadwinner” in 2018, “Mirai” in 2019, “Wolfwalkers” in 2021, and “Wolfwalkers” in 2024. “The Boy and the Heron” is released.
For more than a decade, GKIDS’ influence on film has continued by curating Studio Ghibli’s catalog and introducing American audiences to other masters’ acclaimed films, making them artistically comparable to live-action films. It has redefined the perception of animation as a medium. Makoto Shinkai (Weathering With You), Mamoru Hosoda (Bell), Masaaki Yuasa (Inuou), Tom Moore (Wolfwalkers), Hideaki Anno (Neon Genesis Evangelion), Nora Twomey (The Breadwinner), and others all over the world. Film directors gather together. Satoshi Kon (Perfect Blue), Hiroyuki Imaishi (Promare), and countless others. GKIDS is also the founder and organizer of ANIMATION IS FILM, an annual Los Angeles-based film festival that embraces the highest aspirations of animation as a cinematic art form, and celebrates filmmakers who push the medium’s limits to its fullest. He is also a vocal advocate. About artistic expression.
