Japan Studio Toho Acquires Animation Distributor GKIDS

by Karen Benardello
Japan Studio Toho Acquires Animation Distributor GKIDS

Japanese media giant Toho Co. has secured a deal to acquire celebrated North American indie producer and distributor GKIDS, according to The Hollywood Reporter. The financial terms of the agreement have not been disclosed.

As part of the deal, Toho is picking up a 100 percent equity share in GKIDS. But the latter will still be run under company founder/CEO Eric Beckman and president Dave Jesteadt. GKIDS will also be a wholly-owned subsidiary of the Los Angeles-based Toho International.

Toho is the studio behind the Godzilla franchise. GKIDS, meanwhile, is a distributor that focuses on animated movies.

“Through their hard work, vision and integrity, GKIDS has built a unique position in the U.S. 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,” Toho President and CEO Hiro Matsuoka said in a statement on Tuesday.

“For all GKIDS’ filmmakers, content partners, distribution partners, and especially the fans, this is truly great news,” Beckman and Jesteadt said in a joint statement. “We 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.

The duo continued, “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.”

Beckman and Jesteadt have run GKIDS together since the company released the Oscar-nominated film The Secret of Kells in 2009. It was the first feature from what was then a little-known studio in Ireland, Cartoon Saloon. The fantasy drama marked the directorial debut of Tomm Moore.

Last year, one of GKIDS’ films, Hayao Miyazaki’s The Boy and the Heron, won the Oscar for Best Animated Feature. Since then, 13 different movies GKIDS released in North America have been nominated for the Best Animated Feature Academy Award. The company also had a success at the North American box office. with Godzilla Minus One, the monster franchise’s acclaimed 37th installment.

Toho is one of Japan’s longest-running entertainment conglomerates. As a result, its deal will allow GKIDS to grow internationally and therefore connect with more viewers, productions, creators and foreign partners. The Japanese media giant will also allow the North American distributor to better compete against giants like Netflix, Disney, Universal, Apple and Amazon.

The Toho Group already has a 45 percent share of the Japanese distribution market. As a result of its acquisition of GKIDS, Toho will be able to distribute, market and sell titles — both animated and live action — more widely in the U.S., as well as in Japan. GKIDS will also help with licensing, merchandising and other e-commerce operations under the Toho International banner.

The deal follows Toho and GKIDS’ collaboration on earlier projects like Makoto Shinkai’s Weathering With You and Studio TRIGGER’s Promare and Spirited Away: Live on Stage.

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