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 13 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 has already 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.
“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,” said Toho President and CEO Hiro Matsuoka. “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.
