Sony buys anime streamer Crunchyroll for $1.2 billion; here's my take
Three years ago, I asked Kun Gao, a co-founder and former CEO of anime site Crunchyroll, whether he thought the medium on which his company relied would ever go mainstream. We were sitting in what were then Crunchyroll’s headquarters on the seventh floor of the sprawling Westfield Mall building in San Francisco — a space once occupied by Microsoft. He smiled. “It’s still niche,” he said. “But it’s a pretty big niche.” Last week, Sony took a big bite into that niche by purchasing Crunchyroll from American telecoms giant AT&T’s WarnerMedia for a cool $1.2 billion. The deal puts the company Gao co-founded 14 years ago with five other computer engineering grads (and self-professed “nerds”) from the University of California, Berkeley, at the very center of Sony’s push to become a direct-to-consumer player, joining the fray with behemoths Netflix, Amazon, and Disney. Entertainment, and anime in particular, will be its cornerstone. To industry observers, Sony’s purchase, while likely over