The animation industry saw a massive shake-up today as Japanese entertainment giant Toho Co., Ltd. announced that it has reached an agreement to acquire the Oscar-winning animation company GKIDS, Inc.
Founded in 2008, GKIDS is an animation producer and distributor. The company is best known for releasing international films to North American audiences. Its first major release, garnering the company international recognition, was the 2009 Academy Award-nominated film The Secret of Kells.
Since then, the company has grown into an animation powerhouse, amassing 13 Best Animated Feature nominations at the Academy Awards, including Chico and Rita and A Cat in Paris — two surprising nominations that beat out notables The Adventures of Tintin and Cars 2 at the 84th Academy Awards in 2012.
Last year, the company won Best Animated Feature for Hayao Miyazaki's The Boy and the Heron. Released in December 2023, The Boy and the Heron opened at No. 1, becoming GKIDS' highest-grossing release and Studio Ghibli's highest-grossing film in North America. During this time, Toho International's Godzilla Minus One was also in theaters, achieving the highest box office revenue of all Japanese live-action films in the United States. It became the third highest-grossing foreign language film in U.S. history.
GKIDS actually acquired the North American theatrical distribution rights to the Studio Ghibli library in September 2011. In 2017 the North American home media rights to the Ghibli library transitioned from Disney to GKIDS.
Notable films distributed by GKIDS include Blue Giant (2023), The First Slam Dunk (2023), Summer Ghost (2022), Goodbye, Don Glees! (2022), The End of Evangelion (2021), Wolfwalkers (2020), Ride Your Wave (2020), The Secret World of Arrietty (2019), and more!
With the acquisition, GKIDS will become a wholly-owned subsidiary of the Los Angeles-based Toho International, giving the Japanese entertainment conglomerate an established North American distributor and sales operation. The press release notes:
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 actually already worked together for many years on hits such 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 that GKIDS handles in North America, including work from Studio Ghibli, Mamoru Hosoda, Makoto Shinkai, and more.
“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," 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.”
GKIDS Founder Eric Beckman will remain as CEO, and Dave Jesteadt will remain as President of the company. The financial terms of the acquisition were not disclosed.
“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.”