Sony Corp. will reportedly buy the Crunchyroll animation business owned by AT&T Inc for $ 1.175 billion (RM4.773 billion), aiming to further expand its business including entertainment content.
AT&T and Sony agreed to make the transfer in cash.
The deal will give Sony access to three million Crunchyroll paid customers from over 200 countries and counties. Indirectly this purchase could help Sony to compete globally with big competitors like Netflix.
Sony currently owns Funimation Global Group, a distributor of animated shows in the United States (US) with one million paid subscribers. Funimation was purchased in 2017 for around $ 143 million.
Sony's purchase of Crunchyroll will also open up opportunities for AT&T to invest outside of WarnerMedia, including content and game manufacturing.
Under CEO Kenichiro Yoshida, Sony is doubling its gaming and entertainment business to further increase revenue to cover the unfavorable impact of device sales.
The animation business began to be the focus of the industry after the Japanese animated film Demon Slayer broke the screening record, one of the joint efforts of Sony's music unit, Aniplex.
Sony’s stock value jumped 0.81%, closing at $ 94.13.
