Sony Enters 'Video Distribution Business' with Crunchyroll Acquisition for 1.27 Trillion Won

Online Video Service Company... Strategic Move to Strengthen Its Content Distribution Network

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Sony is acquiring AT&T's animation-focused online streaming service (OTT) Crunchyroll for $1.175 billion (approximately 1.2761 trillion KRW).

On the 9th (local time), according to The Wall Street Journal (WSJ), Sony officially announced that it will acquire the Crunchyroll operator from the American telecommunications company AT&T.

Founded in 2006, Crunchyroll has 90 million users across more than 200 countries worldwide.

Sony's acquisition of Crunchyroll is aimed at strengthening its animation distribution. Through its animation production subsidiary, Aniplex, Sony has been producing and supplying content such as "Demon Slayer." However, due to a weak distribution network, it has been relying on external OTT service providers like Netflix.

Sony plans to acquire all of AT&T's Crunchyroll shares and, after obtaining approval from relevant authorities, make it a wholly owned subsidiary.

Japanese local media, including Nihon Keizai Shimbun, analyzed that Sony's acquisition of Crunchyroll is a move to establish a content platform and simultaneously solidify the entertainment business as Sony's core business.

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