[Click eStock] "Aniplus Maximizes Synergy Through Animax Acquisition"

On the 21st, SK Securities forecasted that the industry leader Aniplus would significantly improve its fundamentals as business synergies are maximized following its acquisition of the second-place competitor Animax.

The day before, Aniplus signed a contract to acquire 100% of Animax Korea's shares for a total of 46 billion KRW. Animax is the industry's second-largest competitor holding the rights to "Demon Slayer." As of the end of last year, it recorded sales of 13.4 billion KRW, operating profit of 4.2 billion KRW, and an operating margin of 30%.

Seonjae Heo, a researcher at SK Securities, stated, “The acquisition funds were raised by issuing convertible bonds (CB) worth 25 billion KRW. Although there may be concerns about long-term overhang and equity dilution due to the CB issuance, the synergies expected from acquiring Animax are anticipated to be greater, making this a very successful merger and acquisition from the company's perspective.”

Researcher Heo added, “The market share of new Japanese titles is expected to increase from 70% in the past to 85% after the acquisition, positioning the company as a dominant player in the market. By acquiring Animax, a major competitor, the price competition during bidding processes that existed in the past has become unnecessary, and the average sourcing cost for new titles will decrease through bulk purchasing, leading to meaningful profitability improvements.”

He also noted, “Animax operates purely in the animation distribution business and holds many contents that do not overlap with Aniplus (such as Demon Slayer and kids’ content), which will generate significant business synergies with the company’s goods business division. For reference, Aniplus currently owns the goods manufacturer Roun Company and its own distribution channel Aniplus Shop, achieving vertical integration in the goods sector, so meaningful external growth through the expansion of the goods business is expected.”