The two firms have already worked together to release films in the U.S., with GKids handling last year’s Oscar-winning Studio Ghibli feature "The Boy and the Heron." Financial terms were not disclosed.

With Toho's purchase of Gkids, the studio behind "The Boy and the Heron," the domestic anime distribution war is heating up.

The Japanese entertainment giant Toho has reached an agreement to acquire the Oscar-winning animation outfit GKIDS, the companies said Tuesday

Animation distributor GKIDS has been acquired by Japan’s Toho. GKIDS will become a wholly-owned subsidiary of the Los Angeles-based Toho International. Founder Eric Beckman will remain as CEO of GKIDS,

In suitably astonishing news, TOHO will be acquiring the renowned Western anime distributor GKIDS as a subsidiary.

Japanese media giant Toho is acquiring Gkids, the North American distributor of animated films like the Oscar-winning The Boy and the Heron as well as live-action hits like Godzilla Minus One. Gkids will continue to operate as a wholly owned subsidiary of the Los Angeles-based Toho International.

Godzilla Minus One and The Boy and the Heron's parallel Oscar triumphs apparently made the two want to go steady.