Sony Pictures Entertainment closes $ 1.2 billion acquisition of Crunchyroll from AT & T – deadline

Sony Pictures Entertainment has completed its acquisition of Crunchyroll from AT&T for $ 1.175 billion, adding to the list of entertainment assets recently abandoned by the telecommunications giant.

The company will be combined with Sony’s Funimation, creating a powerhouse in the anime. Funimation is a joint venture between SPE and Aniplex Inc. of Sony Music Entertainment.

The deal was first announced in December 2020, but reports surfaced in the spring of regulatory concerns over concentrating anime assets under one roof. Crunchyroll said last week that it racked up 5 million streaming subscribers. It has 120 million registered users in more than 200 countries and territories, offering AVOD, mobile games, manga, event merchandising and distribution.

The transaction’s closing announcement said it would allow Crunchyroll and Funimation “to expand distribution for their content partners and expand fan-centric offerings to consumers.”

AT&T finalized last week the split of DirecTV into a new entity 30% owned by private equity firm TPG. It has put together a $ 43 billion merger of its WarnerMedia subsidiary with Discovery Communications, a deal that is expected to get regulatory approval by next summer. In addition to these major transactions, AT&T divested of a 10% stake in Hulu, its New York headquarters and the Latin American subsidiary of DirecTV Vrio.

These measures enabled the company to reduce its debt, which stood at $ 180 billion at the time of the acquisition of Time Warner in 2018. The company’s current plan is to reduce its Net debt to adjusted EBITDA ratio to less than 2.5 times by the end of 2023, compared to a range greater than 4 times where it has been in recent years.

“We are very pleased to welcome Crunchyroll to the Sony Group,” said Kenichiro Yoshida, CEO of Sony Corp. “Anime is a rapidly growing medium that captivates and arouses emotion among audiences around the world. Aligning Crunchyroll and Funimation will bring us even closer to the creators and fans who are the heart of the anime community. We look forward to delivering even more exceptional entertainment that fills the world with emotion through anime. “

Tony Vinciquerra, chairman and CEO of Sony Pictures Entertainment, said Crunchyroll would bring “tremendous value” to the company’s animation efforts. He said the company plans to create “a unified anime subscription experience as soon as possible.”

By combining the two operations, he said, “we are committed to creating the ultimate anime experience for fans and presenting a unique opportunity for our key partners, immensely talented editors and creators to continue to deliver their. masterful content to audiences around the world. . “