Late yesterday it was announced that Toho Co. Ltd., the legendary Japanese studio known for the films of Akira Kurosawa and Godzilla, acquired GKIDS, Inc., the North American animation producer and distributor. The studio reached a 100% equity agreement for the New York and Los Angeles based company. Financial terms were not disclosed.
What this means for the Academy Award nominated company, which distributed last years Best Animated Feature winner Hayao Miyazaki’s The Boy and the Heron, is that it is now a wholly owned subsidiary of Toho. The company will continue to be headed by founder and CEO Eric Breckman and President David Jestaedt. The two have run the company since 2009 and turned it from a two person operation into one of North America’s leading animation companies.
If any company over the last decade created a market for North American theatrical releases for anime, it’s been GKIDS. The company has excelled at successfully releasing a diverse market for anime films from directors such as Miyazaki, Mamoru Hosoda, and Masaki Yuuasa. The company created a successful model other distributors have followed whether through limited screenings with Fathom Events or through wide releases. Right now, the company is seeing success with the release of Look Back, which saw a successful limited roll out before a wider release.
Anime theatrical releases have become big business over the last decade. The Boy and the Heron opened at number 1 at the box office and grossed close to $47 million here according to Box Office Mojo. With anime distributors like Crunchyroll presenting at CinemaCon now, it makes sense for Toho, who produce some of the biggest franchises in anime right now with My Hero Academia and Jujutsu Kaisen, to want a North American distributor for their anime releases. So buying a North American distributor with a proven track record rather than release through a middle man like Crunchyroll is a smart move for the legendary studio.
Read the press release below.
Los Angeles, California, October 15, 2024 – Japanese entertainment leader Toho Co., Ltd. announced today that it has reached an agreement to acquire a 100% equity share of GKIDS, Inc., the Academy Award-winning North American animation producer and distributor. Financial terms were not disclosed.
GKIDS, which maintains offices in New York and Los Angeles, will become a wholly-owned subsidiary of the Los Angeles-based Toho International. GKIDS Founder Eric Beckman will remain as CEO, and Dave Jesteadt will remain as President of the company. The two have run GKIDS together since the company first released the Academy Award-nominated film The Secret of Kells as a two-person company in 2009. Together, they have grown GKIDS into a powerful force in the U.S. animation scene, amassing an outstanding thirteen Best Animated Feature nominations at the Academy Awards, and a win last year for Hayao Miyazaki’s The Boy and the Heron.
Toho’s acquisition of GKIDS serves to further accelerate its “TOHO VISION 2032 TOHO Group Management Corporate Strategy,” which sets the company’s plans for growth and expansion outside of Japan, and aims to connect its Japanese and international productions, creators, and studios more directly and widely with creators and fans overseas. 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 (Severance, Tokyo Vice), formerly known as Endeavor Content. Through GKIDS, Toho adds an established and highly regarded North American theatrical and home entertainment distribution, marketing, and sales operation to complement the licensing, merchandising, and e-commerce operations of its Toho International banner. In turn, GKIDS will be able to tap the synergies and capabilities of the larger Toho parent group, while maintaining its distinct brand, organization, and management team.
Toho and GKIDS have worked together for many years on such hits as Makoto Shinkai’s Weathering With You, Studio TRIGGER’s Promare, Spirited Away: Live on Stage, and others. Toho is also the Japanese domestic distributor for many of the same properties handled by GKIDS in North America, including the works of Studio Ghibli, Mamoru Hosoda, Makoto Shinkai, and many more.
In December 2023, GKIDS released Studio Ghibli’s The Boy and the Heron just one week after Toho International’s release of Godzilla Minus One. Both films were run-away box office successes, with The Boy and the Heron opening at #1 and becoming GKIDS’ highest-grossing release and Studio Ghibli’s highest-grossing film in North America, and with Godzilla Minus One achieving the highest box office revenue of all Japanese live-action films in the United States and becoming the third highest-grossing foreign language film in U.S. history. The two companies shared a celebratory evening at the 96th Academy Awards this past March, when both titles took home Oscars.
Toho President and CEO Hiro Matsuoka said, “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. “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.”
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.
About Toho Co., Ltd.
Established in 1932, Toho has grown its business in the motion picture, real estate and legitimate theater sectors. In motion picture, Toho Group maintains a Japanese distribution market share of over 45%, with Toho handling domestic titles and Toho-Towa and Towa Pictures distributing foreign films. In exhibition, Toho Group manages 722 screens, with a market share of about 30% in Japan. In recent years, Toho has strengthened its development and production capabilities, bringing its own productions to represent about 25% of its annual slate of roughly 25 titles. Toho’s extensive collaboration with Japanese IP owners continues to introduce an entertaining, creative and innovative world of cinema. In its 92-year history, Toho has worked with renowned Japanese filmmakers including Akira Kurosawa, Yasujiro Ozu, Kenji Mizoguchi and auteurs whose ideas and characters still resonate with modern audiences today. With over 7,000 titles, Toho has created masterpieces with versatile talents. Toho continues on this path by remaining a reliable distribution partner for industry veterans like Studio Ghibli, all the key TV networks and Japan’s leading director, Makoto Shinkai.
About Toho International, Inc.
Toho International, Inc., the U.S.-based subsidiary of Japan’s Toho Co., Ltd., brings the iconic Godzilla and other popular anime properties to global audiences through a dynamic licensing, merchandising, and e-commerce business. With over 70 years of Godzilla storytelling, Toho International’s licensing program spans toys, gaming, apparel, accessories, publishing, and more, capturing fans across generations.
In addition to its robust presence in live-action and animated films, Toho International maximizes its IP through dedicated e-commerce platforms for Godzilla and anime, offering exclusive merchandise directly to consumers. By leveraging strategic partnerships, always-on streaming content, and a diverse range of licensed products, Toho International continues to grow its brands and expand its reach in the North American market.
About GKIDS, Inc.
GKIDS is the Academy Award®-winning producer and distributor of artist-driven and award-winning animation from around the world. After an astounding 13 Best Animated Feature nominations, the company took home the Oscar in 2024 for Hayao Miyazaki and Studio Ghibli’s acclaimed feature, The Boy and the Heron. The company’s previous nominations include The Secret of Kells in 2010, A Cat in Paris and Chico & Rita in 2012, Ernest & Celestinein 2014, The Tale of The Princess Kaguya and Song of the Sea in 2015, Boy and the World and When Marnie Was There in 2016, My Life as a Zucchini in 2017, The Breadwinner in 2018, Mirai in 2019, Wolfwalkers in 2021, and The Boy and the Heron in 2024.
For more than a decade, GKIDS’ influence on cinema has redefined the perception of animation as an artistic medium on par with live-action film through its stewardship of the Studio Ghibli catalog and by introducing American audiences to the critically-acclaimed films of other master filmmakers from around the world such as Makoto Shinkai (Weathering With You), Mamoru Hosoda (Belle), Masaaki Yuasa (Inu-Oh), Tomm Moore (Wolfwalkers), Hideaki Anno (Neon Genesis Evangelion), Nora Twomey (The Breadwinner), Satoshi Kon (Perfect Blue) and Hiroyuki Imaishi (Promare), among countless others. GKIDS is also the founder and host of ANIMATION IS FILM, the annual LA-based film festival which embraces the highest aspirations of animation as a cinematic art form, and is a vocal advocate for filmmakers who push the boundaries of the medium to its fullest range of artistic expressions.
English (US) · 