Toei Company announced plans to fully acquire its cinema subsidiary T-Joy through a stock exchange, signaling the Japanese film studio’s push toward greater vertical integration as the domestic box office recovers from pandemic lows.
The Japanese cinema market generated ¥221.5 billion ($1.5 billion) in box office revenues in 2023, approaching pre-pandemic levels and encouraging consolidation moves across the industry.
Under the deal scheduled for July 18, Toei will exchange 47.2 of its shares for each T-Joy ordinary share, according to regulatory filings. The company currently holds 72.3% of T-Joy, which operates multiplex theaters including IMAX locations across Japan.
The acquisition comes as Toei pursues a $2 billion global expansion strategy, allocating $1.6 billion for content and $400 million for business operations through 2027. However, T-Joy’s financial contribution remains modest compared to Toei’s broader ambitions.
Financial documents show T-Joy generated ¥1.9 billion in revenue during fiscal 2025, producing operating profit of just ¥74.6 million. This represents a tiny fraction of Toei’s consolidated revenue of ¥179.9 billion and operating profit of ¥35.2 billion.
The move reflects broader industry trends toward vertical integration, particularly as studios seek more control over distribution channels. Japan’s box office market is projected to grow 3.47% annually through 2029, though competition from streaming services continues pressuring traditional exhibition.
Toei cited enhanced operational flexibility and synergy creation as justifications for the full acquisition. Yet the company’s existing majority control already provided significant influence over T-Joy’s operations, raising questions about the strategic necessity of complete ownership.
The transaction appears designed more for operational simplification than dramatic business transformation, as Toei consolidates its entertainment assets while pursuing international expansion opportunities.
