Navarre/FUNimation Interested in Some Geneon Titles

[Roy Mustang]

This was reported on ICv2 today.

http://www.icv2.com/articles/home/12043.html

During a conference call with analysts discussing the Navarre financial report for the quarter that ended on December 31st, Navarre Corporation CEO Cary Deacon declared that Navarre (through its wholly owned subsidiary, the anime market share leader FUNimation) was "in very early stages of negotiations to acquire some of the Geneon library of titles." Deacon noted that Geneon had about 10% of the anime market and controlled some attractive titles. Deacon expressed his optimism about the current market conditions, which he thinks will provide lots of opportunities for FUNimation, whose prospects for acquisition of new product "remain very strong."



Deacon talked about the infusion of cash that FUNimation's two main competitors (Geneon and ADV) received from Japanese investors nearly two years ago, which according to Deacon, allowed them to bid up the cost of acquiring new anime series to levels at which FUNimation believed the series could not be profitable. The departure of Geneon from the market has, according to Deacon, put "downward pressure on pricing" of new anime series.



Deacon also explained the settlement of a dispute with Atari over revenue from the Dragon Ball video games. The initial $10 million advance payment has been "earned out," which means that FUNimation will be receiving monthly royalty payments that could add up to as much as $3.3 million a year (50% of which must be sent to the Japanese Dragon Ball rights holders). The Atari agreement runs through 2010, so no new big advance payments are in the offing.



Overall Deacon noted that FUNimation had a solid quarter and met operating profit expectations (see "FUNimation Repoerts Solid Quarter"). Inventory for the publishing segment, which includes FUNimation was estimated at $3 million, below the total held during the same quarter in the previous year.

[color="Red"][font="Book Antiqua"]Col. Roy Mustang[/font][/color]

[rocklobster]

I so predicted this!

[jaems-kun]

*prays for the rest of Rozen Maiden*

[mitsuki lover]

We shall see.It doesn't sound quite like a done deal yet.

[Roy Mustang]

It is true that its in the very early stages of negotiation.

But this is a start and glad to see some negotiation going on. It maybe a few weeks before we know anything else, if the deal has been made.


[color="Red"][font="Book Antiqua"]Col. Roy Mustang[/font][/color]

[creed4]

that could hopefully mean we will see those titles back soon.

[mitsuki lover]

As the deal between Geneon and ADV illustrates though any such deal can fall through at the last minute for whatever reason.So again I advise waiting until there is a list of titles and release dates and the first titles are in fact
in the stores before celebrating.
As far as it goes,it's more than likely if and when the deal is finalized that the first off will be titles like Trigun and Samurai Champloo that are quite popular and already finished.I think that they would wait to see how the sales go with those titles before working on finishing those that are still on going.

[Roy Mustang]

As the deal between Geneon and ADV illustrates though any such deal can fall through at the last minute for whatever reason.So again I advise waiting until there is a list of titles and release dates and the first titles are in fact in the stores before celebrating.

This is somewhat true, but the reason why the Geneon and ADV fell though was, because ADV had to pull out and work things out with Sojitz and we still don't know what is going on with that.

FUNimation doesn't have a Japan investing company in the way and they are doing fine. So I would say the deal sticks. The problem is that the negotiation will take a few months maybe and if Funmation does get some Geneon titles, it will be months printing dvd's out. So, it may not be untill Fall or the end of year before you will see any titles coming out. Right now, it looks like Funimation is looking at titles that were not finish or just had been pick up by Geneon then older titles.

FUNimation would be crazy if they didn't pick up Hellsing OVA, Black Lagoon: The Second Barrage, Story of Saiunkoku, Rozen Maiden: Traumend and Guardian of the Sacred Spirit.

[color="Red"][font="Book Antiqua"]Col. Roy Mustang[/font][/color]