Japan’s Toho Buys Ghibli Animation Distributor GKIDS to Further Overseas Growth

People take a picture of Godzilla's head at Shinjyuku Toho building at the Kabukicho district in Tokyo, July 30, 2016. (AP)
People take a picture of Godzilla's head at Shinjyuku Toho building at the Kabukicho district in Tokyo, July 30, 2016. (AP)
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Japan’s Toho Buys Ghibli Animation Distributor GKIDS to Further Overseas Growth

People take a picture of Godzilla's head at Shinjyuku Toho building at the Kabukicho district in Tokyo, July 30, 2016. (AP)
People take a picture of Godzilla's head at Shinjyuku Toho building at the Kabukicho district in Tokyo, July 30, 2016. (AP)

Toho Co, the Japanese creator of the "Godzilla" movie franchise, will acquire the US distributor of Studio Ghibli's famed animated films, it said on Wednesday, to help drive overseas expansion.

The acquisition comes amid a surge in global popularity for Japanese entertainment, and fits with Toho's multi-year growth strategy centered on animation and overseas markets.

New York-based GKIDS, which distributed Ghibli's Oscar-winning "The Boy and the Heron", will become a wholly owned subsidiary of Toho after the deal, whose terms were not disclosed in statements from both companies.

"We are truly thrilled to be joining forces with the esteemed and storied Toho," GKIDS, which has distributed 13 animated films nominated for Oscars, said in a statement, citing founder Eric Beckman and President Dave Jesteadt.

Toho's own "Godzilla Minus One", a hit in overseas markets, took home an Oscar for visual effects in March, while "Shogun", a historical epic filmed mostly in Japanese, won a record number of Emmy Awards last month for a single season of drama.

Japan set up a committee last month to promote its entertainment industry, which was worth 12.9 trillion yen ($86.43 billion) in 2021, ranking third globally after the United States and China, the cabinet office said.

GKIDS manages the film catalogue of Ghibli, the studio of renowned Japanese director Hayao Miyazaki, in North America.

In March, it inked a deal with Warner Bros. Discovery to extend the US streaming rights to Ghibli films.



‘How to Train Your Dragon’ Tops the US Box Office

This image released by Universal Pictures shows Mason Thames, as Hiccup, riding Night Fury dragon, Toothless in a scene from "How to Train Your Dragon", (Universal Pictures via AP)
This image released by Universal Pictures shows Mason Thames, as Hiccup, riding Night Fury dragon, Toothless in a scene from "How to Train Your Dragon", (Universal Pictures via AP)
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‘How to Train Your Dragon’ Tops the US Box Office

This image released by Universal Pictures shows Mason Thames, as Hiccup, riding Night Fury dragon, Toothless in a scene from "How to Train Your Dragon", (Universal Pictures via AP)
This image released by Universal Pictures shows Mason Thames, as Hiccup, riding Night Fury dragon, Toothless in a scene from "How to Train Your Dragon", (Universal Pictures via AP)

Neither Pixar nor zombies were enough to topple “How to Train Your Dragon" from the No. 1 slot at North American box offices over the weekend. The Universal Pictures live-action remake remained the top film, bringing in $37 million in ticket sales in its second weekend, despite the sizeable new releases of “Elio” and “28 Years Later” , according to studio estimates Sunday. “How To Train Your Dragon” has rapidly amassed $358.2 million worldwide, The Associated Press reported.

Six years after its last entry, the Dean DeBlois-directed “How To Train Your Dragon” has proven a potent revival of the DreamWorks Animation franchise. A sequel is already in the works for the $150 million production, which remakes the 2010 animated tale about a Viking boy and his dragon.

Pixar's “Elio” had a particularly tough weekend. The Walt Disney Co. animation studio has often launched some of its biggest titles in June, including “Cars,” “WALL-E” and “Toy Story 4.” But “Elio,” a science fiction adventure about a boy who dreams of meeting aliens, notched a modest $21 million, the lowest opening ever for Pixar.

“This is a weak opening for a new Pixar movie,” said David A. Gross, who runs the movie consulting firm FranchiseRe. “These would be solid numbers for another original animation film, but this is Pixar, and by Pixar’s remarkable standard, the opening is well below average.”

“Elio,” originally set for release in early 2024, had a bumpy road to the screen. Adrian Molina — co-director of “Coco” — was replaced mid-production by Domee Shi (“Turning Red”) and Madeline Sharafian. Back at Disney’s D23 conference in 2022, America Ferrera appeared to announce her role as Elio’s mother, but the character doesn’t even exist in the revamped film.

Disney and Pixar spent at least $150 million making “Elio,” which didn’t fare any better internationally than it did in North America, bringing in just $14 million from 43 territories. Pixar stumbled coming out of the pandemic before stabilizing performance with 2023’s “Elemental” ($496.4 million worldwide) and 2024’s “Inside Out 2” ($1.7 billion), which was the company's biggest box office hit.

“Elemental” was Pixar's previously lowest earning film, launching with $29.6 million. It rallied in later weeks to collect nearly half a billion dollars at the box office. The company's first movie, “Toy Story,” opened with $29.1 million in 1995, or $60 when adjusted for inflation. It remains to be seen whether “Elio's” decent reviews and “A” from CinemaScore audiences can lead it to repeat “Elemental's” trajectory.

With most schools on summer break, the competition for family audiences was stiff. Disney’s own “Lilo & Stitch,” another live-action remake, continued to pull in young moviegoers. It grossed $9.7 million in its fifth weekend, bringing its global tally to $910.3 million.

“28 Years Later” signaled the return of another, far gorier franchise. Director Danny Boyle reunited with screenwriter Alex Garland to resume their pandemic apocalypse thriller 25 years after “28 Days Later” and 18 years after its sequel, “28 Weeks Later.”

The Sony Pictures release opened with $30 million. That was good enough to give Boyle, the filmmaker of “Slumdog Millionaire” and “Trainspotting,” the biggest opening weekend of his career. The film, which cost $60 million to make, jumps ahead nearly three decades from the outbreak of the so-called rage virus for a coming-of-age story about a 12-year-old (Alfie Williams) venturing out of his family’s protected village. Aaron Taylor-Johnson, Jodie Comer and Ralph Fiennes co-star.

Reviews have been good (90% fresh on Rotten Tomatoes) for “28 Years Later,” though audience reaction (a “B” CinemaScore) is mixed. Boyle has more plans for the zombie franchise, which will next see the release of “28 Years Later: The Bone Temple” next year from director Nia DaCosta.

“28 Years Later” added another $30 million in 59 overseas markets.

After its strong start last weekend with $12 million, A24’s “Materialists” held well with $5.8 million in its second weekend. The romantic drama by writer-director Celine Song and starring Dakota Johnson, Pedro Pascal and Chris Evans has collected $24 million so far.

Next weekend should also be a competitive one in movie theaters, with both “F1,” from Apple and Warner Bros., and Universal’s “Megan 2.0” launching in cinemas.