GENDA, the entertainment business holding company, announced its decision to acquire movie distribution company GAGA, making it a subsidiary following a board meeting on November 20, 2023. The acquisition involves GAGA purchasing all shares held by TY Limited and 78.05% of the outstanding shares, designating it as a specified subsidiary. The financial details of the transaction, including the transfer price, were not disclosed.
Established as Midas Entertainment in 2018, GENDA has rapidly expanded through a proactive M&A strategy, primarily in the operation of amusement facilities. Previous subsidiaries include publishing companies Takarajima, Sega Entertainment, and VR production company Dynamore Amusement. The addition of GAGA, known for its expertise in film distribution, further diversifies GENDA’s business lineup.
GAGA, founded in 1986, is a renowned film company engaged in various aspects of the film industry, including purchasing foreign films, planning, producing, and distributing films. The company is recognized for curating not only blockbuster movies but also high-quality works from around the world, with a particular emphasis on animated films. CEO Tatsumi Yoda oversees the animation division, which has played a pivotal role in GAGA’s recent success, including releases such as “Welcome to Komada Distillery” and “The Prince of Tennis Reborn Movie Version.”
Despite annual sales ranging from 2.5 billion yen to 2.8 billion yen and profits in fiscal years 2021 and 2022, GAGA reported a negative net income of 331 million yen in the fiscal year ended March 2023.
In terms of management history, GAGA has undergone several major changes in capital relationships, including becoming a USEN subsidiary in 2005 and subsequent management rights transfers. CEO Tatsumi Yoda’s management buyout (MBO) in 2009 led to the acquisition of Yoda’s management companies, T.Y. Kono Limited and Kinoshita Management. In 2016, H.I.S. and Creek & River Co., Ltd. made capital investments.
Even after GAGA becomes a subsidiary of GENDA, Tatsumi Yoda will retain a 21.95% stake in the company. The move signals GENDA’s continued expansion and strategic positioning in the entertainment industry.
