The purchase price for the transaction is $1.17bn subject to customary working capital and other adjustments, and the proceeds will be paid in cash at closing.
AT&T has agreed to sell its Crunchyroll anime business to Sony’s Funimation, a joint venture between Sony Pictures Entertainment Inc. and Sony Music Entertainment (Japan) Inc.’s subsidiary, Aniplex.
The purchase price for the transaction is $1.17bn subject to customary working capital and other adjustments, and the proceeds will be paid in cash at closing. The transaction is subject to customary closing conditions, including regulatory approvals.
Crunchyroll is an anime direct-to-consumer service within AT&T’s WarnerMedia segment with more than three million SVOD subscribers and growing. It serves 90m registered users across more than 200 countries and territories offering AVOD, mobile games, manga, events merchandise and distribution.
The combination of Crunchyroll and Funimation provides the opportunity to broaden distribution for their content partners and expand fan-centric offerings for consumers.
Commenting on the sale, Tony Goncalves, Chief Revenue Officer, WarnerMedia, said: “The Crunchyroll team has done an extraordinary job of not only growing the Crunchyroll brand but also building a passionate community of anime fans. Crunchyroll’s success is a direct result of the company’s culture and commitment to their fans.
“By combining with Funimation, they will continue to nurture a global community and bring more anime to more people. I’m incredibly proud of the Crunchyroll team and what they have been able to accomplish in the digital media space in such a short period of time. They’ve created an end-to-end global ecosystem for this incredible art form.”
Tony Vinciquerra, Chairman and CEO of Sony Pictures Entertainment added: “We are proud to bring Crunchyroll into the Sony family. Through Funimation and our terrific partners at Aniplex and Sony Music Entertainment Japan, we have a deep understanding of this global art form and are well-positioned to deliver outstanding content to audiences around the world.
“Together with Crunchyroll, we will create the best possible experience for fans and greater opportunity for creators, producers and publishers in Japan and elsewhere. Funimation has been doing this for over 25 years and we look forward to continuing to leverage the power of creativity and technology to succeed in this rapidly growing segment of entertainment.”