Translation: Navarre is about to own Funimation and all of it's liscenses.

Will this aquisition affect Toonami? It's hard to say at this point in time as Navarre will have to honor all of Funi's current contracts. Once they expire, it very well could a whole new ballgame.

Source: arrivenet.com
Read More for full Arrivenet article

Navarre Corporation a leading publisher and distributor of a broad range of home entertainment and multimedia software products, announced that it has executed a definitive agreement to acquire 100% of the general and limited partnership interests in FUNimation Productions, Ltd. and The FUNimation Store, Ltd. Navarre anticipates that this transaction will close before May 15, 2005.

FUNimation, based in Fort Worth, Texas, is a leading home video distributor and licensor of Japanese animation and children's entertainment in the United States providing titles that include Dragonball Z, Dragonball GT, Yu Yu Hakusho, Case Closed and Fullmetal Alchemist. In addition to the home video distribution of its proprietary content, FUNimation engages in third- party marketing, sales and distribution agreements with content providers, including 4Kids Entertainment Inc., Nelvana, Alliance Atlantis and WGBH. FUNimation also acquires master licenses to properties through long-term arrangements and leverages this proprietary content into various revenue streams including television broadcast, VHS and DVD home videos, toys, video games, and trading cards. For the years ended December 31, 2001, 2002 and 2003, FUNimation had net sales of $49.8 million, $63.7 million and $81.6 million, respectively, and pre-tax net income of $20.0 million, $24.9 million and $30.5 million, respectively.

Navarre is acquiring the FUNimation partnership interests for a payment at closing by Navarre of approximately $100,500,000 in cash, plus its issuance of between 1,495,216 and 1,827,486 shares of Navarre common stock. These shares of Navarre common stock will be unregistered, but they will be subject to certain registration rights. Additionally, the sellers could receive up to $17,000,000 in cash to be paid over five years if FUNimation achieves certain agreed-upon financial targets during that time period. The closing of the transaction is subject to the satisfaction of customary conditions including a requirement that Navarre shall have obtained financing sufficient to enable Navarre to consummate the transaction.

Eric Paulson, Chairman and CEO of Navarre stated, "The completion of the FUNimation acquisition will be a continuation of the transformation of our company as it reflects the ongoing execution of our strategy to utilize the strong underlying asset of our distribution business to support and assist in the growth of our higher margin publishing business." Paulson continued, "FUNimation will bring new business skills of international licensing and brand development. With the signing of this agreement, we look forward to welcoming FUNimation to the portfolio of companies in our Publishing segment."

"We are extremely excited to join the Navarre family of companies," said Gen Fukunaga, president of FUNimation Productions, Ltd. "Utilizing Navarre's capital structure and distribution efficiencies will aid FUNimation in its ongoing business."

Cary Deacon, Navarre's Chief Operating Officer of Publishing and Licensing commented, "The FUNimation acquisition is consistent with our overall business strategy and will significantly increase our publishing offerings, establishes long-term relationships with new vendors and customers, and solidify our position as a premier provider of published and licensed home entertainment products. We believe in FUNimation's business model and its brand management success in anime and children's entertainment, licensing, and home video industries. As well, FUNimation brings a strong management team that will bolster our overall group."