WarnerMedia is looking for Crunchyroll to load its anime subscription streaming service – with a asking price of at least $ 1 billion – as member company AT&T tries to pay debts – sources tell Variation. One of the potential buyers is Sony Pictures Entertainment, which operates the competing Funimation service.
WarnerMedia’s move to sell Crunchyroll was previously reported by The Information, who said the media company wanted $ 1.5 billion for the streamer. But a source familiar with WarnerMedia’s plans said that was much higher than the company expects to get for Crunchyroll, which is being offered to additional buyers in addition to Sony.
Reps to WarnerMedia, Crunchyroll and Sony Pictures Entertainment declined to comment.
Crunchyroll announced two weeks ago that it had surpassed 3 million paying subscribers worldwide, and has more than 70 million registered users. In the US, the ad-free version of the service is $ 7.99 per month and includes simulcasts of Japanese programming as soon as one hour after they air in the country.
Currently, Crunchyroll contains more than 1,000 titles and 30,000 episodes, which claims to represent the largest anime library in the world.
Crunchyroll is part of WarnerMedia’s Otter Media division, which also includes Rooster Teeth, Fullscreen, VRV and interests in Reese Witherspoon’s Hello Sunshine and Gunpowder & Sky studio. (The telco acquired the majority stake of the Chernin Group in Otter in 2018.)
Over the past two years, AT&T has been selling strategic assets because it seems to be reducing its debt burden. Last year, AT&T sold its 10% stake in Hulu for $ 1.43 billion. As of the end of June, the company reported $ 153.4 billion in long-term debt (much of which was raised from the Time Warner deal).
Founded in 2006, Crunchyroll is currently headed by general manager Joanne Waage. She took over at the end of 2018 for co-founder and former GM Kun Gao.
Earlier this year, Crunchyroll announced their inaugural layer of originals, with 12 so far announced 12 series. The first two originals “Tower of God”, a Crunchyroll and Webtoon Production, and “The God of High School”, both set new viewer records on platform, according to Otter Media.
In 2019, Crunchyroll closed the majority stake in Viz Media Europe Group, expanding its suite of consumer brands to include streaming services Anime Digital Network (in collaboration with Citel, a subsidiary of Média-Participations) and Anime on Demand, DVD and manga publisher KAZÉ , and distributor of live-action content Eye See Movies. Crunchyroll also hosts events (including property events Crunchyroll Expo, Anime Awards, Crunchyroll Movie Nights, KAZÉ Anime Nights), consumer products, Crunchyroll Games, and manga.
Funimation and Crunchyroll previously had a deal to cross-license content (under which Crunchyroll had offered subtitled versions and Funimation provided duplicate versions of the same shows). But Sony, which bought Funimation in 2017, ended that deal in 2018. Funimation is now an independently operated joint venture between Sony Pictures Entertainment and the Japanese company Aniplex, a subsidiary of Sony Music Entertainment (Japan) Inc.
