GKIDS, the indie distributor notable for its animated film releases and many Studio Ghibli titles in North America, has been acquired by the iconic Japanese studio Toho.
The move gives Toho, which has released everything from Godzilla films to anime classics like “My Hero Academia,” a major expansion in North America and a distribution arm to extend their reach further.
Toho is picking up a 100 percent equity share in the company led by founder and CEO Eric Beckman and President Dave Jesteadt. Beckman is remaining as CEO and Jesteadt is remaining president as part of the move. GKIDS will be a wholly-owned subsidiary of the Los Angeles-based Toho International.
Financial terms of the deal were not disclosed.
GKIDS was founded in 2009 with the release of the Oscar-nominated “The Secret of Kells,” at that point just a two-person company. Since then, 13 different films GKIDS released in North America have been nominated for Best Animated Feature, including last year’s win for Hayao Miyazaki’s “The Boy and the Heron.”
Toho, originally founded in 1932, has ambitions for major international expansion, including everything from connecting Japanese creators to international productions and studios. The GKIDS acquisition gives them a means to distribute, market, and sell, not necessarily just animated films but other live-action titles, more widely in the U.S. It will also help with licensing, merchandising and other e-commerce operations under the Toho International banner.
Toho President and CEO Hiro Matsuoka said in a statement, “Through their hard work, vision, and integrity, GKIDS has built a unique position in the US market, which dovetails perfectly with Toho’s own strengths and strategic mission. This partnership accelerates Toho’s goals to prioritize animation, develop international markets, and support IP creation, while bringing exceptional Japanese and animated content to global audiences. We are honored to be working together with Eric, Dave and the entire GKIDS team and welcoming them into the Toho family.”
“For all GKIDS’ filmmakers, content partners, distribution partners, and especially the fans, this is truly great news,” said Beckman and Jesteadt in a joint statement. “GKIDS will continue to operate as we always have – with the same team, the same passion, and the same mission – but now with the backing of a highly complementary and legendary parent company. We are truly thrilled to be joining forces with the esteemed and storied Toho, home to Godzilla and Akira Kurosawa, as well as blockbuster anime franchises like ‘My Hero Academia’ and ‘Jujutsu Kaisen.’ This partnership will empower us to bring even more amazing films to North American and global audiences, while we continue to champion animation as a cinematic artform and push the limits of what the medium is capable of. We could not be more excited about the opportunities in front of us. The best is yet to come.”
Toho recently acquired the Japanese animation studio Science SARU (“Scott Pilgrim Takes Off,” “DAN DA DAN”) and made an equity investment in Fifth Season (formerly Endeavor Content), the production and distributor behind “Severance” and “Tokyo Vice,” to name a few.
Toho and GKIDS previously worked together on “Weathering With You” from director Makoto Shinkai, and they also partnered on the stage adaptation of “Spirited Away.” But while Toho has traditionally distributed Studio Ghibli movies in Japan, GKIDS has tended to be the distributor for those same films in North America.
Last year, GKIDS released Miyazaki’s “The Boy and the Heron” in theaters in North America, grossing $46 million domestic, making it one of GKIDS’ highest grossing titles ever after Toho turned “The Boy and the Heron” into a mega Japanese hit, totaling $173 million worldwide. Toho just a week later in December 2023 also had a hit on its hands in North America with “Godzilla Minus One,” which grossed $115 million worldwide and also won an Oscar.
Nomura Securities Co., Ltd. acted as exclusive financial advisor to Toho, and Nishimura & Asahi (Gaikokuho Kyodo Jigyo) acting as legal advisor. ACF Investment Bank acted as exclusive financial advisor to GKIDS with Sheppard Mullin Richter & Hampton LLP acting as legal advisor.
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