Japanese entertainment giant Toho Co., Ltd., which was founded in 1932 and is most famous for the “Godzilla” films, has reached an agreement to acquire a 100% equity share of GKids, Inc., the Oscar-winning North American animation producer and distributor. Financial terms were not disclosed.
GKids 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 president of the company.
The two have run the company together since 2009, then they released “The Secret of Kells” from Irish animation studio Cartoon Saloon. Together, they have turned GKids into a lowkey powerhouse, consistently releasing animated features from around the world and earning thirteen Best Animated Feature Oscar nominations. Last year they finally won for Hayao Miyazaki’s masterpiece “The Boy and the Heron” which was, beyond being a critical hit, was a sleeper smash, making over $46 million domestically.
The acquisition of GKids is part of Toho’s plan for growth and expansion outside of Japan, which the official release said, “aims to connect its Japanese and international productions, creators, and studios more directly and widely with creators and fans overseas.” Toho recently acquired the Japanese animation studio Studio SARU, who animated the recent Netflix series “Scott Pilgrim Takes Off,” and made an equity investment in production and distribution company Fifth Season, formerly known as Endeavor Content.
Toho and GKids have worked together on a number of projects, including Makoto Shinkai’s “Weathering With You” and the home video release of the stage version of Hayao Miyazaki’s “Spirited Away.”
According to the official release, “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 President and CEO Hiro Matsuoka said in an official 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 an official 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.”
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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