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Gonzo Digimation

In: Computers and Technology

Submitted By sudeepks
Words 1876
Pages 8
Case: GONZO Digimation (A)
Case Summary

In an attractive Animation Production Industry, as the Digital Animation market was booming, two anime production companies – GONZO and Digimation decide to go for a merger in September 1999, hoping to make a better anime production company. After reaching a final agreement through consultations and negotiations, the two companies establish GONZO Digimation Holding (GDH) as the holding company in February 2000.

GONZO, founded in 1992, had Shoji Murahama as the CEO, who was a skilled producer and coordinator in anime production. GONZO had anime program, game anime and anime movie productions as its core businesses and had already established its brand name due to its high quality work. On the other hand, Digimation, founded in May 1996, had Shinichiro Ishikawa as the President, who was a BCG consultant. Digimation pioneered the introduction of digital technologies into anime production processes, which was very labour intensive. It worked on subcontracted productions and accumulated expertise with the digital technologies in anime production.

With the highly recognized GONZO brand and the advanced digital animation technology of Digimation, backed up by the creative and talented employees of both companies, the merger was expected to go well and produce good results. However the merger did not seem to work well and internal tensions begin to build in the organization.

In December 2000, Ishikawa, then CEO of the holding company GDH, contacted and involved Mr. Takaya Kato and Mr. Soichi Kariyazono of Apax Globis Partners & Co. (“Globis”), one of the VCs, to identify the existing issues and investigate possible solutions so as to maximize the impact of the merger and sustain the growth of GDH. They identified a number of management issues relating to internal communication/relationships, job positioning, daily

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