TBS Holdings Accelerates Anime Expansion via Xenotoon Acquisition and Strategic Studio Merger

In a decisive move to solidify its footprint in the global animation market, TBS Holdings (TBS-HD) has announced the acquisition of a 51% stake in the emerging animation studio Xenotoon. This strategic acquisition, executed through its specialized IP subsidiary SAND B, marks a significant step in the broadcaster’s long-term plan to integrate cutting-edge production technology with high-value intellectual property (IP) management.

The move is not merely an expansion of assets but a blueprint for a new era of production at TBS. By bringing Xenotoon into the fold, TBS-HD aims to combine the studio’s modern, creator-led production methods with the established expertise of its existing animation arms, signaling an aggressive push into the highly competitive animation sector.

A New Pillar: The Acquisition of Xenotoon

Founded in 2019 by CEO Koichi Kawase, Xenotoon has quickly gained industry attention for its commitment to a creator-driven model and its proactive adoption of the latest animation technologies. The studio has become a notable name in recent years, particularly through its association with acclaimed creator Genjo Yasuda.

Yasuda, who has garnered immense popularity among younger demographics via social media, saw significant success in 2025 with the hit production Make a Girl. The project, which Yasuda served as original creator, director, and scriptwriter, was produced under a lean, small-scale team structure—a testament to the efficiency and modern workflow that TBS-HD seeks to internalize.

Consolidating IP: The Role of SAND B and the 30 Billion Yen Fund

The acquisition was facilitated by SAND B, a strategic subsidiary established by TBS-HD in 2025. SAND B was created to centralize the group’s previously fragmented resources, bringing together creators, production teams, and content IP management under one roof. The primary focus of SAND B is to drive multi-faceted development from single pieces of IP, particularly within the animation space.

To fuel this ambition, TBS-HD has allocated a massive 30 billion yen investment framework dedicated to the acquisition and development of content and IP. The investment in Xenotoon is a core component of this fund, as TBS-HD shifts its focus toward monetizing these strategic investments through expanded content lifecycles.

The Future Landscape: Merging Xenotoon with Seven Arcs

Perhaps the most ambitious aspect of this announcement is the planned consolidation of production talent. TBS-HD is currently exploring a management integration between Xenotoon and Seven Arcs, with a target completion date within the 2027 fiscal year (running from April 2026 to March 2027).

This merger aims to create a powerful hybrid studio by blending two distinct production philosophies:

• Seven Arcs: Established in 2002, this studio is a specialist in traditional 2D hand-drawn animation. It has a proven track record of producing major hits such as Magical Girl Lyrical Nanoha, Blue Period, and Tonikaku Kawaii. Seven Arcs, which integrated the operations of Arcturus, Seven Arcs, and Seven Arcs Pictures in 2019, serves as the current backbone of TBS-HD’s animation division.
• Xenotoon: A modern, tech-forward studio focused on efficiency and creator-led, agile production.

By merging these two entities, TBS-HD intends to create a versatile production powerhouse capable of handling both high-end traditional artistry and rapid, tech-driven content creation.

Key Takeaways

• Majority Stake: TBS-HD has acquired 51% of Xenotoon via its subsidiary SAND B.
• Strategic Integration: SAND B will serve as the central hub for managing creators and diversifying IP.
• Massive Investment: A 30 billion yen fund is driving TBS-HD’s content and IP acquisition strategy.
• Planned Merger: Xenotoon and Seven Arcs are expected to undergo management integration by FY2027.
• Hybrid Model: The goal is to combine Seven Arcs’ 2D hand-drawn expertise with Xenotoon’s modern, efficient workflows.

Frequently Asked Questions

Why is TBS-HD acquiring Xenotoon?

TBS-HD aims to integrate Xenotoon’s efficient, creator-led production methods and its expertise in utilizing the latest animation technologies into the TBS Group.

What is the significance of SAND B?

SAND B is a strategic subsidiary established in 2025 to unify the group’s creators, production assets, and IP management, specifically to maximize the multi-platform potential of animation content.

When will the merger between Xenotoon and Seven Arcs occur?

TBS-HD is targeting the 2027 fiscal year (which begins in April 2026) for the potential management integration of the two studios.