Navarre puts Funimation up for sale (update April 4, 2011: sold)

[SeijiSensei]

http://www.animenewsnetwork.com/news...-of-funimation

The report states that Navarre "has not yet received an adequate offer" in its efforts to sell Funimation. Although its efforts continue, the company anticipates halting the process in the event that no adequate offer is made in the fourth quarter, which ends on March 31.

Navarre has already said they don't see much fit between Funi and their other operations in the software industry. What will it mean if they can't find a buyer? Perhaps Funi's Q3 income uptick will encourage some bidders. In the quarter that ended on December 31st, Funi had a net income of $1.8 million, twice the $928,000 it earned a year earlier.

[Vexx]

This is one of those 'doesn't make sense' decisions of "it makes a fine load of money but it doesn't match our decor" .... they *could* just let it continue to run and just keep skimming off the top without bothering it. If I were a Navarre stockholder, I'd be wondering about their sensibility and what they plan to do with the proceeds.

It always bothers me when a corporation slurps up a smaller company and then sells it, closes it, or guts it despite it being profitable if left alone.

[Repelsteeltju]

Here's hoping that FUNimation will be dismantled... or they could at least fire the current staff, because they are doing as shitty job.

[bayoab]

Originally Posted by Vexx

This is one of those 'doesn't make sense' decisions of "it makes a fine load of money but it doesn't match our decor" .... they *could* just let it continue to run and just keep skimming off the top without bothering it. If I were a Navarre stockholder, I'd be wondering about their sensibility and what they plan to do with the proceeds.

As a few in other threads on this topic have pointed out, this appears to be that Navarre rather have the one time burst of income to pay off debt instead of paying the debt over the long run and having a company that isn't exactly aligned with their core strengths.

[Vexx]

Originally Posted by bayoab

As a few in other threads on this topic have pointed out, this appears to be that Navarre rather have the one time burst of income to pay off debt instead of paying the debt over the long run and having a company that isn't exactly aligned with their core strengths.

I figures that was the underlying issue.... selling something profitable to fix screw-ups elsewhere.

Pardon me if I chuckle at the phrase "aligned with core strengths". I've been around corporations, raids, buyouts, etc enough to know that's pretty much bullpucky from executives who can't even pick their "core strengths" out of a lineup (glances over at LG making everything from spark plugs to stoves to rocketships).

[Master_Yoma]

I know it a shame that know one whats to buy but what can they do

Maybe no one whats to buy any thing in Texas

[brocko]

It's just corporate ebay. Watch as ADV will come in to snipe Funi at the very last minute

[DragoZERO]

They are afraid Funi will tank like everything else.

Quick, someone give me a multi-billion dollar lotto ticket. I promise to provide damned good releases, ones that don't have jewelry that could give you detention.

[Vexx]

Originally Posted by brocko

It's just corporate ebay. Watch as ADV will come in to snipe Funi at the very last minute

I can't tell... so just fyi to the reading audience: ADV collapsed in 2009. It exists no more. Towards the end it contributed to its own demise with terrible customer relations and failure to deliver on both manga and anime series.

[GDB]

Originally Posted by Vexx

I can't tell... so just fyi to the reading audience: ADV collapsed in 2009. It exists no more. Towards the end it contributed to its own demise with terrible customer relations and failure to deliver on both manga and anime series.

Didn't it merely restructure into Sentai23?

[Vexx]

Originally Posted by GDB

Didn't it merely restructure into Sentai23?

That was one of the death rattles (2006), see the wiki:
http://en.wikipedia.org/wiki/A.D._Vision

The following companies all acquired assets from A.D. Vision:

• Sentai Filmworks is the licensor company for acquiring Japanese anime into the North American market.
• AEsir Holdings has licensed rights to most of ADV Films' former library of titles (some titles are licensed directly by Sentai Filmworks).
• Seraphim Studios acquired Amusement Park Media, ADV's production studio, and it was renamed Seraphim Digital Studios.
• Valkyrie Media Partners acquired the Anime Network. The network continues to operate as before the sale.
• Section23 Films is a distributor and marketing company of Switchblade Pictures, Sentai Filmworks, and AEsir Holdings.

Not a "restructure" so much as a Sentai23 got many of the assets/pieces. Sheehan's "marketeer-speak" is bluntly some wad of bullshit inversion on that matter

[felix]

*enters Funimation site*

http://www.navarre.com/funimation/

Originally Posted by white page with nothing working

An unexpected error has occured, please attempt the previous function again (if you are logged in you may also want to try logging out of the application and logging back in). If you still receive an error, please contact Online Sales: 1-888-775-6565 or onlinesales@navarre.com.

Seems someone killed it to put it out of its misery.

[lubczyk]

I was under the impression that Funimation was one of the few anime companies in the West which was profitable.

What is their function now, anyway? Do they license titles? Translate? Distribute?

[Vexx]

Originally Posted by lubczyk

I was under the impression that Funimation was one of the few anime companies in the West which was profitable.

What is their function now, anyway? Do they license titles? Translate? Distribute?

Your impression is correct... it turns a nice profit to cost ratio. Its just that Funimation doesn't fit into "Navarre's core strengths" (cough*bullshit exec talk* cough). And yes, they do all the above.

[Aird]

It was a nice quarter for them income wise however net income is down year over year for the first 9 months. It's down a little over 5%. 2010: 4.424 million vs 2009: 4.670 million. That's not very good considering that 2010 should be far better than 2009 because the economy is in better shape now than it was in 2009.

It's a shame they don't publish the sales/revenue numbers for Funimation. That would give an indicator of the us anime market is expanding or shrinking. Maybe they do say it in there conference call but I'm too lazy to look for it.

[SeijiSensei]

Making these comparisons is always problematic because the shows they're releasing one year may be considerably more or less appealing than those they released in another year. DragonBall Z is the 800-pound gorilla in the room. I'm sure fluctuations in its appeal from year to year can produce substantial changes in Funi's revenues. Just look how DBZ dominates all Funi's other titles at Amazon. I wouldn't be surprised if its sales didn't decline after DBZ stopped being shown on Cartoon Network in 2008(?).

[Aird]

Originally Posted by SeijiSensei

Making these comparisons is always problematic because the shows they're releasing one year may be considerably more or less appealing than those they released in another year. DragonBall Z is the 800-pound gorilla in the room. I'm sure fluctuations in its appeal from year to year can produce substantial changes in Funi's revenues. Just look how DBZ dominates all Funi's other titles at Amazon. I wouldn't be surprised if its sales didn't decline after DBZ stopped being shown on Cartoon Network in 2008(?).

That's understandable but at the same time you can't have too much volatility in revenue otherwise you can't find properly value the company. You do want to see revenue growth over a period of time to show that your market is healthy. I don't think any prospective investor would want to enter into a declining market if there is no turnaround in sight.

Also being profitable does not make it a good company. You don't know how much capital is being invested to get those profits. ROI might not be worth the risk.

[DragoZERO]

They need a new franchise to ride on. *cough*Macross*cough*

[Dilla]

Isn't there a near impossible load of red-tape to get through in obtaining a Macross license nowadays?

[DragoZERO]

Yeah, and that is primary reason why. But the original series was held by ADV, so they should be able to do that. It's the other ones that haven't been before that would be the problem. But there has to be a way for them to do it. I know part of the problem lies with Japanese companies themselves holding different rights and it was made decades ago too.

I just want the original series in a nice box set with the ADV dub, which was actually pretty good and a lot of effort was put in. Oh, and Sheryl on BD would be nice, even if it's not quite 1080p.

... They could put a horse in their bed.