Funimation Announced Acquisition of Crunchyroll

In December 2020, Funimation announced its acquisition of Crunchyroll, AT&T's animation business, for $1.175 billion. This strategic move was part of a broader effort by Sony, which owns Funimation, to enhance its competitive position in the global entertainment market, particularly against major players like Netflix. The acquisition was significant as it consolidated Funimation's position in the anime streaming industry, allowing it to expand its content library and reach a wider audience. Crunchyroll, known for its extensive catalog of anime and manga, had a substantial subscriber base, which Funimation aimed to leverage to increase its market share. The deal also included the absorption of subsidiaries such as Wakanim and Madman Anime, which would be rebranded under the Crunchyroll name, further strengthening the brand's presence in various regions. This acquisition not only marked a pivotal moment in the anime industry but also reflected the growing demand for anime content worldwide, as streaming services increasingly sought to diversify their offerings to attract and retain subscribers. The combined resources and content of Funimation and Crunchyroll positioned the new entity to better compete in a rapidly evolving digital landscape, where consumer preferences were shifting towards on-demand and diverse entertainment options.